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Segment of accounting and how it works?

Sagot :

CBCE8

Answer:What Is a Segment?

A segment is a component of a business that generates its own revenues and creates its own product, product lines, or service offerings. Segments typically have discrete associated costs and operations. Segments are also referred to as "business segments."

Usually, if a unit of a business can be separated or lifted out of the company as a whole and remain self-sufficient, it satisfies the criteria of being classified as a business segment. Financial information should be available for each separate segment's activities and performance.

Traditionally, each individual segment is periodically reviewed by the company's management before a decision can be made regarding the amount of capital that will be allotted to it for a particular operating period.

KEY TAKEAWAYS

A segment is a term used to describe a component of a business that generates its own revenues and creates its own product or product lines.

Segments typically have their own discrete associated costs and operations.

Usually, if a unit of a business can be carved out of the entire company and remain self-sufficient, it may be classified as its own segment.

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