The Following Information on Sales Is Available for the Company's

question 18

Multiple Choice

The following information on sales is available for the company's three operating segments: $$\begin{array} { | c | r | r | r | } \hline \text { Segment } & \text { International Sales } & \text { External Sales } & \text { Total Sales } \\\hline \mathrm { A } & \$ 60,000 & \$ 300,000 & \$ 360,000 \\\hline \mathrm { B } & 200,000 & 10,000 & 210,000 \\\hline \mathrm { C } & & \underline { 1,500,000 } & \underline { 1,500,000 } \\\hline & \$ 260,000 & \$ 1,810,000 & \$ 2,070,000 \\\hline\end{array}$$ Which of the operating segments must be reported separately?

• A)Only Segment C
• B)Only Segments B and C
• C)Only Segments A and C
• D)Segments A, B, and C

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Definitions:

Acquisition

The purchase of one company by another.

Economies Of Scale

The cost advantage that arises with increased output of a product, as the fixed costs are spread out over more units of production.

Merger

The combination of two or more companies into a single entity, often with the goal of increasing market share, reducing costs, or gaining access to new markets or technologies.

Hard Objectives

Specific, quantifiable, and often financial goals that an organization aims to achieve.