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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Medford Company has seven operating segments but only four (G, H, I, and J) are of significant size to warrant separate disclosure. As a whole, the segments generated revenues of $710,000 ($520,000 + $190,000) from outside parties. In addition, the segments had $260,000 in intersegment transfers ($220,000 + $40,000).
|
Outside Sales |
Intersegment Sales |
|
|
G |
$120,000 |
$80,000 |
|
H |
150,000 |
50,000 |
|
I |
160,000 |
20,000 |
|
J |
90,000 |
70,000 |
|
Totals |
$520,000 |
$220,000 |
|
K |
$60,000 |
–0– |
|
L |
70,000 |
$20,000 |
|
M |
60,000 |
20,000 |
|
Totals |
$190,000 |
$40,000 |
Which of the following statements is true?
a. A sufficient number of segments are being reported because those segments have $740,000 in revenues of a total of $970,000 for the company as a whole.
b. Not enough segments are being reported because those segments have $520,000 in outside sales of a total of $710,000 for the company as a whole.
c. Not enough segments are being reported because those segments have $740,000 in revenues of a total of $970,000 for the company as a whole.
d. A sufficient number of segments are being reported because those segments have $520,000 in outside sales of a total of $710,000 for the company as a whole.
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