Which of the Following Statements Is True

question 20

Multiple Choice

Which of the following statements is true?

• A) In determining reportable segments, two tests are applied and both must be met.
• B) In determining reportable segments, three tests are applied and all three must be met.
• C) In determining reportable segments, two tests are applied and only one must be met.
• D) In determining reportable segments, three tests are applied and only one must be met.
• E) In determining reportable segments, at least 80% of the revenues from external customers must be reported.

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Definitions:

Safety Stock

A quantity of inventory kept on hand to protect against fluctuations in demand or supply.

Lead Time

The amount of time that elapses between the initiation of a process and its completion.

Safety Stock

Inventory kept on hand to protect against fluctuations in demand or supply, ensuring that demand can be met without stockouts.

Lead Time

The amount of time between the initiation of a process and its completion.