Under IFRS 8, Two or More Operating Segments May Be

question 30

Multiple Choice

Under IFRS 8, two or more operating segments may be aggregated into a single operating segment if aggregation is consistent with the core principle of the standard, the segments have similar economic characteristics, and the segments are similar in each of the following respects:

• A) I, II and III only;
• B) I, III and IV only;
• C) I, II and IV only;
• D) II, III and IV only.

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Definitions:

Direct Manufacturing Cost

Expenses directly associated with the production of goods, including labor and materials.

Units Produced

The aggregate count of finished products produced over a designated time frame.

Direct Manufacturing Cost

Expenses directly associated with the production of goods, including raw materials and direct labor costs.

Units Produced

The total number of complete items manufactured during a specific period.