When defining a reportable segment, which of the following conditions would be sufficient to allow a company to combine two operating segments for purposes of testing?
A) The products sold by each segment are produced in the same plant.
B) Both segments have several customers in common.
C) The segments may sell different products, but they have a similar economic environment and similar business activities.
D) Both segments are required to adhere to U.S. Department of Labor regulations regarding immigration laws.
E) Both segments are owned by the same parent company.

Question

Quizplus · Accepted Answer

Operating segments can be combined if they have similar economic characteristics and are similar in terms of the nature of products and services, production processes, type or class of customer, distribution methods, and regulatory environment.

When Defining a Reportable Segment, Which of the Following Conditions