Which of the Following Statements Regarding Requirements for Segment Disclosures

question 34

Multiple Choice

Which of the following statements regarding requirements for segment disclosures is most accurate?

• A) Segment disclosures must include most of the items found in financial statements for the entire enterprise.
• B) Segment reporting is generally applied in a similar fashion in various companies,since the requirement are detailed and inflexible.
• C) Segment reporting requirements are so flexible that firms can often resist disclosing information they would prefer to keep confidential.
• D) Segment reporting is not required for any entities;the standards are concerned with determination of segment information if a company wishes to disclose it.

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Definitions:

Average Variable Cost

The variable cost per unit of output, determined by dividing the total variable costs by the number of units of output.

Output

The total quantity of goods or services produced or supplied by a firm or economy within a certain period.

Product Price

The amount of money required to purchase a specific good or service offered in the market.

Units of Output

Measures the quantity of production or goods produced by a firm or industry during a given time period.