Two or more operating segments can be combined into a single operating segment, if they share similarities in the following area EXCEPT for:
A)They have the same type of class of customer for their products and services.
B)The production processes are of the same nature.
C)They share the same accounting periods and are consistent in their accounting methods.
D)They share the same distribution channels of their products and/or services.

Question

Two or more operating segments can be combined into a single operating segment, if they share similarities in the following area EXCEPT for:
A)​They have the same type of class of customer for their products and services.
B)​The production processes are of the same nature.
C)​They share the same accounting periods and are consistent in their accounting methods.
D)​They share the same distribution channels of their products and/or services.

Quizplus · Accepted Answer

The similarities that can allow for the combination of two or more operating segments into a single operating segment include having the same type of class of customer, production processes of the same nature, and sharing the same distribution channels. However, sharing the same accounting periods and consistent accounting methods may not necessarily be a relevant factor in determining whether two or more operating segments can be combined into a single operating segment.

Two or More Operating Segments Can Be Combined into a Single