GAAP Requires Disclosures for Each Reportable Operating Segment for Each

question 16

Multiple Choice

GAAP requires disclosures for each reportable operating segment for each of the following,except for

• A)Revenues.
• B)Depreciation expense.
• C)R&D expenditures.
• D)Extraordinary items.

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Definitions:

Invested Assets

Assets that are purchased or acquired for the purpose of generating income or appreciation, including stocks, bonds, real estate, and more.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is contributing to covering fixed costs and generating profit.

Machine Hours

Machine hours measure the total operation time of machinery within a production process, often used as a basis for allocating overhead costs.

Markup Percentage

The percentage added to the cost price of goods to cover overhead and profit in the selling price.