REFERENCE: Ref.08_07 Elektronix,Inc.has Three Operating Segments with the Following Information: in

question 75

Multiple Choice

REFERENCE: Ref.08_07
Elektronix,Inc.has three operating segments with the following information: In addition,revenues generated at corporate headquarters are $300,000,and common assets are $16,000,000.
-Which of the following statements is true according to SFAS 131?

• A)A reconciliation of segment assets to consolidated assets is required.
• B)Segment information does not have to be in accordance with generally accepted accounting principles.
• C)Disclosure of a major customer's identity is required.
• D)Geographic area information must be disclosed in interim financial statements.
• E)A company comprised of only one operating segment does not have to report geographic area information.

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Definitions:

Marginal Social Cost

The total cost society bears for the production of an additional unit of a product, including both private and external costs.

Marginal Private Cost

The additional cost borne by a producer for producing one extra unit of a good or service.

Marginal Cost Curve

A graphical representation showing the increase in total cost that arises from producing one additional unit of a good or service.

Industry Supply

The total quantity of a good or service that all producers in a market are willing and able to sell at various prices.