The calculation of a reportable segment's operating income or loss excludes which of the following?
A) Corporate costs allocated to the segment on a reasonable basis
B) Segment sales
C) Segment wage expense
D) Segment income tax expense

Question

Quizplus · Accepted Answer

The calculation of a reportable segment's operating income or loss includes all revenues, expenses, gains, and losses that are directly attributable to the segment and can be allocated to it on a reasonable basis. However, income tax expense is not considered part of the segment's operating income or loss. Income tax expense is a non-operating expense and is reported separately on the income statement.

The Calculation of a Reportable Segment's Operating Income or Loss