Which of the following conditions would not indicate that two business segments should be classified as a single operating segment?
A)They have similar amounts of intersegment revenues or expenses.
B)They have a similar distribution method for products.
C)They have similar production processes.
D)They have similar products or services.

Question

Quizplus · Accepted Answer

The key factor for classifying two business segments as a single operating segment is the similarity in economic characteristics, such as products or services, production processes, or distribution methods. Similar amounts of intersegment revenues or expenses do not necessarily indicate similar economic characteristics or operations, making it a less relevant criterion for this classification.

Which of the Following Conditions Would Not Indicate That Two