Segments That Do Not Satisfy the Requirements of a Reportable

question 26

Multiple Choice

Segments that do not satisfy the requirements of a reportable segment must:

• A) not be disclosed at all in the financial report;
• B) be reported in the notes to the financial statements;
• C) be combined and disclosed as 'all other segements';
• D) be combined with the smallest reportable segment.

Recognize and utilize specific and clear language in business writing.

Distinguish between connotative and denotative meanings of words.

Identify and avoid ethnically and racially biased language.

Apply strategies to maintain and protect goodwill in communication.

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Definitions:

Overapplied

In cost accounting, this refers to a situation where the allocated overhead costs exceed the actual overhead costs incurred.

Variable Overhead Rate

The per-unit cost of overhead that changes with the level of production or activity.

Efficiency Variances

The differences between actual costs and the standard or budgeted costs based on the efficient use of resources.

Fixed Manufacturing Overhead Budget

A predetermined estimate of the total fixed costs required to support production activities, excluding variable costs directly tied to production volume.