RSM222H1 Chapter Notes - Chapter 11: Transfer Pricing, Fixed Cost, Total Absorption Costing

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27 Dec 2013
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Effective decen requires segment reporting to permit an analysis and evaluation of the decisions made by the segment managers. Segment: part or activity of an org for which want cost, rev, or profit data. Possible to classify segments according to managers ability to control rev, cost, and profits. To uncover problems that manager may need not one but several iss that focus on the segments of a company: known as segmented reporting. An operating segment is a component of an enterprise: that engages in business activities, whose operating results are regularly reviewed by cfo, for which discrete financial info is available. Segmented statements can be prepared for diff levels of activity in an org and in differing formats: divisions segmented according to their major product lines. Through this can discover opportunities and courses of action that would otherwise have remained hidden from view.

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