[runhomejack]

An enterprise must disclose all of the following about each reportable segment if the amounts are used by the chief operating decision maker, except:

a) depreciation expense

b) allocated expenses

c) interest expense

d) income tax expense

The answer is B. Okay I got that, and this may be stupid but… what are allocated expenses in this context?

BEC - Pass
FAR - Pass
REG - Pass
AUD - Pass

[Anonymous]

Allocated expenses are expenses that aren't directed traceable to a segment but are reasonably allocated by the CFO to that segment. They're basically indirect costs that the “chief operating decision maker” deems best fit to be included in that segment as opposed to anywhere else.

[Author]

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