The key to reporting accounting information by segments is determining what constitutes a segment.Of the following,which is not a method of determining a reportable segment?
A) Operating profit
B) Revenues
C) Number of employees
D) Combined identifiable assets

Question

Quizplus · Accepted Answer

Operating profit, revenues, and combined identifiable assets are all common methods of determining reportable segments. However, the number of employees is not typically considered a primary factor in determining segments. While employee headcount can be a useful metric for certain industries, it is not as directly tied to a segment's financial performance as the other three options listed.

The Key to Reporting Accounting Information by Segments Is Determining