In determining if two operating segments may be combined into one, which of the following factors should be considered?a.similarities regarding profit marginsb.whether the nature of the products and services is similarc.whether there is a similar amount of intracompany salesd.whether there is a similar number of employees

The operating segment is the part of the business entity which is engaged in the major business…

Answered: In determining if two operating…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools

Section: Chapter Questions

Problem 39CYBK

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In determining if two operating segments may be combined into one, which of the following factors should be considered?

a.	similarities regarding profit margins
b.	whether the nature of the products and services is similar
c.	whether there is a similar amount of intracompany sales
d.	whether there is a similar number of employees

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