Explain the term- operating segments, Financial Management

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Operating segments

An operating segment is a component of an organisation

  • It engages in business activities from that it can earn revenues and incur expenses(this also comprise inter-company trading).
  • Whose operating results are reviewed regularly by management who then allocate resources accordingly while reviewing performance of the operating segment.
  • For which discrete financial information is available. It means separate data is kept for every operating segment.

 


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