All of the Following Statements Regarding a Business Segment Are

question 230

Multiple Choice

All of the following statements regarding a business segment are true except:

• A) A company's gain or loss from selling or closing down a segment is reported separately.
• B) A business segment is a part of a company's operations that serves a particular product line.
• C) A segment has assets, liabilities, and financial results of operations that can be distinguished from those of other parts of the company.
• D) A segment's income for the period prior to the disposal and the gain or loss resulting from disposing of the segment's assets are reported separately.
• E) The income tax effects of a discontinued segment are combined with income tax from continuing operations.

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Definitions:

Standard Costing

An accounting method used to estimate the cost of production by assigning standard costs for materials and labor, used for budgeting and controlling expenses.

Cost Comparisons

The process of comparing the costs of different options or strategies to determine the most economically viable choice.

Motivational Tool

A strategy or object used to inspire or increase an individual's drive towards achieving goals or improving performance.

Overhead Cost Applied

The allocation of indirect costs, such as utilities and rent, to specific products or departments within a company based on predetermined rates or bases.