Which of the following is not an aspect in identifying an operating segment?
A)The business component's operating results are reviewed regularly by the enterprise's chief operating decision maker.
B)It is a component of the enterprise that is expected to generate revenues and expenses.
C)Discreet financial information on the business component is regularly available through the company's financial reporting system.
D)Other companies in the same industry use similar operating segments.

Question

Quizplus · Accepted Answer

The fact that other companies in the same industry use similar operating segments may be a factor in identifying an operating segment, but it is not a necessary aspect in and of itself. The other three options are all key aspects in identifying an operating segment: the segment's operating results are reviewed by the chief decision maker, it generates revenues and expenses, and financial information on the segment is regularly available.

Which of the Following Is Not an Aspect in Identifying