A Company That Generates Reports by Both Geographic Region and Product

question 48

Multiple Choice

A company that generates reports by both geographic region and product line must consider additional criteria in identifying operating segments when there are multiple sets of reports. Which of the following statement(s) is correct?
(I) ) An operating segment has a segment manager who is directly accountable to the chief operating decision maker for its financial performance.
(II) ) If more than one set of organizational units exists, each organizational unit is considered an operating segment even if there is only one set for which segment managers are held responsible.
(III.) If segment managers exist for two or more overlapping sets of organizational units, the nature of the business activities must be considered.

• A) I, II, and III.
• B) I and III only.
• C) I and II only.
• D) II and III only.
• E) None of these.

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Definitions:

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Air Embolus

A medical condition where air bubbles enter the bloodstream and obstruct blood flow, potentially causing severe health issues.

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