A Business Segment

question 35

Multiple Choice

A business segment:

• A) Requires only internal reporting.
• B) Is a part of a company that is separately identified by its products, services, or geographic market.
• C) Requires special journals.
• D) Requires subsidiary ledgers.
• E) Cannot report its results separately.

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Definitions:

Direct Method

A costing method that assigns service departments' costs directly to production departments without going through multiple allocations.

Administrative Department

A division within a company responsible for overseeing and providing essential support services such as finance, HR, and clerical work.

Employee Hours

The total number of hours worked by all employees within a specific period, often used for productivity analysis and labor costing.

Direct Method

In cost accounting, a technique that allocates service department costs directly to producing departments without considering any services rendered between service departments.