For internal decision-making purposes, Dashwood Corporation's operating segments have been identified as follows:
Revenues of the segments are external, with the exception of tools, which sold $400,000 to other segments, and Appliances, which sold $200,000 to other segments.
Required:
1. In applying the "revenue" test to identify reporting segments, what is the test value for Dashwood Corporation?
2. Using the "revenue" test, which of Dashwood's operating segments will also be reportable segments?

Question

For internal decision-making purposes, Dashwood Corporation's operating segments have been identified as follows:
  Revenues of the segments are external, with the exception of tools, which sold $400,000 to other segments, and Appliances, which sold $200,000 to other segments.
Required:
1. In applying the "revenue" test to identify reporting segments, what is the test value for Dashwood Corporation?
2. Using the "revenue" test, which of Dashwood's operating segments will also be reportable segments?

Quizplus · Accepted Answer

The Answer of For internal decision-making purposes, Dashwood Corporation's operating segments have been identified as follows:
  Revenues of the segments are external, with the exception of tools, which sold $400,000 to other segments, and Appliances, which sold $200,000 to other segments.
Required:
1. In applying the "revenue" test to identify reporting segments, what is the test value for Dashwood Corporation?
2. Using the "revenue" test, which of Dashwood's operating segments will also be reportable segments?

For Internal Decision-Making Purposes, Dashwood Corporation's Operating Segments Have Been