For an Operating Segment to Be Considered a Reporting Segment

question 29

Multiple Choice

For an operating segment to be considered a reporting segment under the revenue threshold,its reported revenue must be 10% or more of

• A)the combined enterprise revenues,eliminating all relevant intracompany transfers and balances.
• B)the combined revenues,excluding intersegment revenues,of all operating segments.
• C)the combined revenues,including intersegment revenues,of all operating segments.
• D)the consolidated revenue of all operating segments.

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Definitions:

Units Produced

The total number of complete units a company produces within a given period.

Product Costs

Costs that are directly associated with the creation of a product, including direct labor, materials, and manufacturing overhead.

Fixed Manufacturing Cost

Expenses related to manufacturing that remain constant regardless of the level of production, such as salaries of supervisory staff and depreciation of factory equipment.

Units Produced

The total quantity of items manufactured during a specific period.