What Information Does U

question 85

Multiple Choice

What information does U.S. GAAP require to be disclosed for a major customer?

• A) The identity of the customer.
• B) The operating segment reporting sales to the customer.
• C) The geographic area of the customer.
• D) The percentage of sales derived from the customer.
• E) The length of time the customer has been a customer of the company.

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Definitions:

Department Allocations

The process of distributing overhead costs to different departments based on relevant allocation bases.

Allocate

The process of distributing resources or assigning costs to different departments, projects, or cost centers within an organization.

Production Department

A specialized business unit focused on the creation of goods and services, often involving manufacturing processes or operations.

Proportional Usage

A method of allocating resources, costs, or expenses based on the relative use or contribution of each segment in the production process or service delivery.