ASC 280,Disclosure About Segments of an Enterprise and Related Information,has

question 20

Essay

ASC 280,Disclosure about Segments of an Enterprise and Related Information,has taken what has been referred to as a "management approach" to the definition of a segment and the allocation of costs to a segment.
Required:
a)What is meant by a management approach? How does this concept of a management approach impact the decision to disclose information?
b)How are decisions about cost allocation handled in segment disclosures?

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Definitions:

Supply Curve

A visual depiction that illustrates the connection between the quantity of a product that sellers are ready to offer and its price.

$1

Represents one unit of currency, particularly in the context of the United States, though it can also apply to other countries' currencies that are named "dollar."

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that producers are willing to supply at that price.

Gasoline

A refined petroleum product used as fuel in internal combustion engines.