Q-21-12 - Horngren'S Financial And Managerial Accounting

Question

Question:What is a business segment? Give some examples.

Step-by-Step Solution

Answer

Answer

 

A business segment is a separate chain of a business.

 

Step 1: Business segment

A business segment is a separately identifiable chain that extracts revenue from the sale of goods or rendering of services.

Step 2: Examples of a business segment

A business segment is an identifiable part of the firm for which  financial information is available. The business segment can be segmented by customer (commercial and residential), geography (domestic and international), Products, etc.