Similar Operating Segments May Be Combined If the Segments Have

question 40

Multiple Choice

Similar operating segments may be combined if the segments have similar economic characteristics.Which one of the following is a similar economic characteristic under GAAP?

• A)The segments' management teams
• B)The tax reporting law sections
• C)The distribution method for products or services
• D)The expected rates of return and risk for the segments' productive assets

Calculate and understand the significance of operating leverage in predicting changes in operating income.

Determine the variable and fixed costs from given data, and understand their impact on the company’s profitability.

Understand and calculate the contribution margin and its role in assessing a company’s profitability.

Analyze the impact of changes in sales volume on operating income.

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Definitions:

Med-Arb

A combined process of mediation and arbitration where parties first attempt mediation, and if unresolved, the same or a different neutral party arbitrates the dispute.

Alternative Dispute Resolution

Alternative Dispute Resolution (ADR) encompasses methods outside the judicial system to resolve disputes, including arbitration and mediation.

Initial Steps

The preliminary actions or procedures that are taken at the beginning of a process or project.

Lawsuit

A legal dispute brought before a court where one party seeks to obtain a resolution or damages from another.