The profitability information that should be reported for each reportable segment of a business enterprise consists of
A)An operating profit-or-loss figure consisting of segment revenues less traceable costs and allocated common costs
B)An operating profit-or-loss figure consisting of segment revenues less traceable costs but not allocated common costs
C)An operating profit-or-loss figure consisting of segment revenues less allocated common costs but not traceable costs
D)Segment revenues only

Question

Quizplus · Accepted Answer

The most comprehensive profitability information that should be reported for each reportable segment of a business enterprise is an operating profit-or-loss figure consisting of segment revenues less traceable costs and allocated common costs. This provides a more accurate reflection of the segment's financial performance since it takes into account both direct and indirect costs associated with the segment's operations. Option B does not consider allocated common costs, while option C does not consider traceable costs. Option D only provides information on segment revenues and does not account for costs associated with generating those revenues.

The Profitability Information That Should Be Reported for Each Reportable