alleryStart learning →Head-office cost for a segment's operations is its expense if?
AIt can reasonably be allocated
BIt is approved by auditors
CIt exceeds one lakh rupees
DIt is paid in cash only
Answer & Solution
Correct answer: A. It can reasonably be allocated
Costs borne centrally for a segment count as its expense when they relate to its operations and can be attributed on a reasonable basis.
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