The management approach to segmental reporting
A)focuses on how management organizes information for internal decision making.
B)requires that the company's chief executive officer decide what segments will be reported.
C)separates the costs of management from the costs of operations to determine segment profit or loss.
D)is required only in the United States.

Question

The management approach to segmental reporting
A)​focuses on how management organizes information for internal decision making.
B)​requires that the company's chief executive officer decide what segments will be reported.
C)​separates the costs of management from the costs of operations to determine segment profit or loss.
D)​is required only in the United States.

Quizplus · Accepted Answer

The management approach to segmental reporting focuses on how management organizes information for internal decision making, rather than being required by regulatory bodies. It involves breaking down the company's operations into segments to better understand the performance of each area and make informed decisions about resource allocation. The CEO may be involved in determining which segments are reported, but this is not a requirement of the management approach. Separating costs of management from operations is not necessarily a feature of this approach.

The Management Approach to Segmental Reporting