Test to determine reportable segments


Problem: When applying the operating profit and loss test to determine reportable segments, FASB 131 prescribes that costs assigned to an operating segment should:

1 reflect the reporting practices of the industry.

2 reflect the reporting practices of the company.

3 be in harmony with international accounting standards.

4 be restricted to direct traceable costs and widely accepted common costs.

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Accounting Basics: Test to determine reportable segments
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