Trevor Company Discloses Supplementary Operating Segment Information for Its Three

question 66

Multiple Choice

Trevor Company discloses supplementary operating segment information for its three reportable segments.Data for 20X8 are available as follows: Additional 20X8 expenses include indirect operating expenses of $200,000.Appropriately selected common indirect operating expenses are allocated to segments based on the ratio of each segment's sales to total sales.The 20X8 operating profit for Segment B was:

• A) $180,000
• B) $120,000
• C) $150,000
• D) $250,000

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Definitions:

Merchandising Company

A type of business that purchases goods in a ready-to-sell condition and earns income by selling these goods to end consumers.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.

Product Costs

Costs that are directly associated with the manufacture of goods, including materials, labor, and manufacturing overhead.

Financial Reporting

Financial reporting involves the disclosure of financial results and related information to various stakeholders about a company's financial health and performance.