A segment should probably be dropped when the segment has important side effects on other segments cannot cover its own costs. The correct option is B.
<h3>What is a segment margin?</h3>
The profit or loss generated by one component of a business is referred to as segment margin.
Segment margin only considers the segment's revenue and expenses.
By analyzing a company's strengths and weaknesses, segment margin can provide an accurate picture of where it is performing well and where it is not.
If a segment cannot cover its own costs, it should be dropped unless it has significant side effects on other segments.
Thus, the correct option is B.
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Answer:
Yes, I do agree with the statement
Explanation:
The statement which is stating that the company net income as well as the statement of the owner's equity both are included or shown indirectly in the company balance sheet . As balance sheet is that statement which tells the financial position or performance of the company at a specific time period.
Because the net income is the outcome of income statement and directly shown or stated in the income statement whereas owner's equity is the capital of the business which is shown in the balance sheet. Net income is already included in retained earnings which means shown indirectly in the balance sheet.
Answer:
c.
Explanation:
Based on the information provided within the question it can be said that in order for it to be enforceable, a writing is required for the employment agreement. This is because the employment requires initial work for a month before receiving payment for the services provided. Unlike the other two purchases, since money is being exchanged directly for a product or service at the exact moment.
Definition of discretionary expenses : The cost that does not essential for your daily life operation or business
Example of discretionary expenses :
- I may buy paint to give color for my toenails
- A business hire some entertainers for its employees to gain their goodwill
If inflation is lower than expected, it would benefit the union and it would be a disadvantage to Friendly Airlines because the real wage increase would now be 4%.
<h3>What is inflation?</h3>
Inflation is when there is a general increase in the general price level of an economy. If inflation turns out to be lower than expected, the employers would be at a disadvantage while the employees would be at advantage because there would be an increase in their real wages.
Increase in real wage = real increase in wage + (expected inflation + actual inflation)
3% + (6% - 5%) = 4%
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