alleryStart learning →The purpose of identifying distinguishable segments is efficiency in decision-making and:
AOccasional entertainment
BOccupational enrolment
COperational encryption
DOperational effectiveness
Answer & Solution
Correct answer: D. Operational effectiveness
1. Segments are not created merely to draw a tidier organisation chart.
2. They exist so that decisions and performance can both be located.
3. The purpose is efficiency in decision-making and effectiveness in operational performance.
4. So the second half is operational effectiveness.
_Source: OpenStax Principles of Accounting Volume 2, Managerial Accounting (CC BY-NC-SA 4.0), Ch 9 'Responsibility Accounting and Decentralization', sections 9.1-9.4_
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