Which of the following qualifies as a reportable segment?
a.South American segment,whose results of operations are reported directly to the chief operating officer,and has 5% of the company's assets,9% of revenues,and 8% of the profits.
b.Eastern Europe segment which reports its results directly to the manager of the European division,and has 20% of the company's assets,12% of revenues, and 11% of profits.
c. North American segment,whose assets are 12% of the company's assets of all segments,and management reports to the chief operating officer.
d.Corporate headquarters,which oversees $1 billion in sales for the entire company.
Explanation
Choice“c”is correct.Assets of the North American segment exceed 10% combined assets of all operating segments.
Choice“d”is incorrect. Corporate headquarters is not considered a segment.
Choice“a”is incorrect. The South American segment does not meet any of the 10% minimums(Revenue,P&L or Assets)。
Choice“b”is incorrect. Eastern Europe segment does not report to the chief operating officer.
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