Which of the following is not a major problem for segment reporting?
A) There are problems with verification of information.
B) There are problems with segment identification.
C) The greater the disaggregation, the more likely the need to allocate common costs, which could distort profits.
D) U.S. firms do not provide much information about their segments.

Question

Quizplus · Accepted Answer

The statement "U.S. firms do not provide much information about their segments" is not a major problem for segment reporting. However, the other options listed are major problems that companies can face when reporting segment information.

Which of the Following Is Not a Major Problem for Segment