Which of the Following Is Not a Characteristic That Defines

question 21

Multiple Choice

Which of the following is not a characteristic that defines a reportable operating segment according to U.S. GAAP?

• A)Operating results are regularly reviewed by the enterprise's chief operating officer.
• B)Discrete financial information is available.
• C)Engages in business activities from which it may earn revenues and incur expenses.
• D)Represents more than 20% of total company revenues, assets, or net income.

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Definitions:

Raw Materials Production Needs

The quantity and type of raw materials required to meet production schedules for finished goods.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end consumer.

Raw Materials Cost

The expense associated with the raw materials consumed in producing a finished product.

Raw Materials Production Needs

The quantity of raw materials required to meet production targets, taking into account current inventory levels and future production plans.