Trevor Company Discloses Supplementary Operating Segment Information for Its Three

question 50

Multiple Choice

Trevor Company discloses supplementary operating segment information for its three reportable segments.Data for 2008 are available as follows: Allocable costs for the year was $180,000.Allocable costs are assigned based on the ratio of a segment's income before allocable costs to total income before allocable costs.The 2008 operating profit for Segment B was:

• A)$110,000
• B)$180,000
• C)$126,000
• D)$120,000

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Definitions:

Minimal Credit Sales

The lowest volume of sales that a company makes on credit, impacting cash flow and credit management.

Restrictive Policy

Economic policies implemented to reduce inflation, stabilize currency, or restrict credit growth through measures such as increasing interest rates or reducing government spending.

Flexible Policy

A strategy or approach that is adaptable and able to change in response to external conditions or new information.

Short-Term Bank Loans

Borrowings from banks that are scheduled to be repaid within a year.