What Is the Minimum Amount of Operating Profit or Loss

question 68

Multiple Choice

What is the minimum amount of operating profit or loss an operating segment must have to be considered a reportable segment?

• A) $124,000.
• B) $127,600.
• C) $100,000.
• D) $130,000.
• E) $140,000.

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Definitions:

Traceable Fixed Expense

Fixed costs that can be directly associated with a specific product, department, or segment of a business, facilitating more accurate financial analysis.

Net Operating Income

The profit generated from a company's core business operations, excluding expenses and revenues not directly related to its main activities.

Nearest Whole Number

A rounding of a number to the closest integer, without any decimal part.

Balanced Scorecard

A strategic planning and management system that organizations use to communicate what they are trying to accomplish and measure progress against these objectives.