Nobody downloaded yet

The Definition of an Operating Segment - Essay Example

Comments (1) Cite this document
The operating segments of an enterprise are the different profits centers that generate the company money. For instance if a company has various divisions dedicated to the production of different products each division would be considered an independent operating center. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94% of users find it useful
The Definition of an Operating Segment
Read TextPreview

Extract of sample
"The Definition of an Operating Segment"

Download file to see previous pages Corporations that sell at the retail level, but who also have an online operation have multiple operating segments. The e-commerce operation would be considered an operating segment. Let’s take the Jiffy Lube business as an example. The money generated by the oil change operation would be considered an operating segment. The car wash operation of the business is another operating segment. Any food items sold inside the store in the waiting area would be a third operating segment of the company.
I agree with your definition of an operating segment. It is imperative for the CEO or COO of a company to evaluate the performance of each operating segment on a recurrent basis. Whenever an operating segment starts to under perform that segment could become unprofitable. A strategy that can be used by management to eliminate operating segments that are not generating profits is divesture. Divesture can be defined as the partial or full disposal of an investment or asset through sale, exchange, closure or bankruptcy (Investopedia, 2011).
Investopedia.com (2011). Divesture. Retrieved September 7, 2011 from http://www.investopedia.com/terms/d/divestiture.asp#axzz1XEq4B6YF
Effective and successful managers are able to generate profits from all the operating segments of a company. On many instances companies achieve expansion by adding operating segments to their operations. ...
Two powerful stock exchanges are the NYSE and the LSE. The Securities and Exchange Act of 1933 requires companies to register with the SEC prior to going public. The Securities and Exchange Act of 1934 discusses the matter of being public. Once a company is public the SEC oversees its activities. The Securities and Exchange Act of 1934 regulates broker dealers and stock exchanges. 6. GAAP guidelines are used in the preparation of financial statement disclosures. Financial statement disclosures are comments or explanations listed in a company’s financial statements. Three types of items that are covered by disclosures and whose inclusion is mandatory based on GAAP rules are changes or errors, asset retirement and insurance contract modification. There are also voluntary disclosures included in the business reports of companies. Some voluntary disclosures include forward looking statements and management analysis. 5. The threshold to for an operating segment to be reportable is listed below: Reported revenue is at least 10 percent of combined revenue Reported profit (loss) is at least 10 percent of combined profit (loss) Assets are 10 percent or more of combined assets (Schroeder & Clark & Cathey, 2011). Schroeder, R.G., Clark, M.W., Cathey, J.M. (2011). Financial Accounting Theory and Analysis (10th ed.). New Jersey: John Wiley & Sons. 7. Weekly Summary Week 5 was very challenging, but I learned a lot about accounting during the week. The individual paper discussed pension funds. I learned that the use of pension funds became used a lot in corporate America after World War II. The accounting profession and the government have ensured that corporations respect the rights of retirees by properly funding pension funds. In ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The Definition of an Operating Segment Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved de https://studentshare.org/business/1391202-week
(The Definition of an Operating Segment Essay Example | Topics and Well Written Essays - 750 Words)
“The Definition of an Operating Segment Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/business/1391202-week.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
milleralysa added comment 4 months ago
Student rated this paper as
This essay was always my weak point. I could never complete it well. Still, after I found this particular essay, I understood how it should be completed. So, I performed my research afterward and completed the essay in several hours, instead of weeks as it was previously.
In essence, there is a love and hate relationship between the two people (Voo, 2007); one moment, they are getting along just as friends should, but the next moment the two friends find themselves against each other. A frenemy is often treated accordingly, with everyone being conscious of what that person is.
3 Pages(750 words)Essay
Analyzing Market Segment Opportunities
What promotional activities might Prince use to reach the following segments? (a) Recreational players Recreational tennis players are those who play tennis for fun. They are not consistent tennis players and therefore they do not engage in playing tennis on a constant basis, say having seasonal games and competition.
3 Pages(750 words)Essay
Premium Beer Customer Segment
The current competitive advantage Pure Blonde was also largely due to the popularity of the brand in the premium beer customer segment. Foster identified one of the most popular customer segment of premium beer i.e. Premium Peter. The consumers of Premium Peter segment had the different attitude and beliefs from other bear drinking segments.
8 Pages(2000 words)Essay
Operating Segments
This paper also examines if there is evidence on whether the current requirements in segment reporting increases the quality of information that is available to its users. This paper takes a stand
6 Pages(1500 words)Essay
Assignment for my course International Accounting and Consultancy. Writer MUST be ON TIME. Writer needs to send me somethinganything on the 13thMarch UK tim
The IFRS adopts the 'management approach' to report on different segments as set out in Statements of Financial Accounting Standards 131 (SFAS 131). In this way it becomes possible for the users of the financial statements to make an in-depth analysis of the statements and raise queries as to the ways in which the entity was controlled by its senior decision makers.
12 Pages(3000 words)Essay
Segment reporting for investor
Another condition which qualifies a part of a company as segment is that the chief executive of the company must periodically review the performance of this part in order to provide it a status of a segment. "Operating segments are components of a company for which separate financial information is available and is evaluated regularly by the chief operating decision maker (CODM) in deciding how to allocate resources and in assessing performance"(Link,2003).
10 Pages(2500 words)Essay
Segment 1: Industry Analysis
??s supply chain include wholesalers of who are the supply industries and the demand industry, which is represented by individuals, health and fitness clubs, and hotels, and ski resorts (Schmidt, 2012). The key drivers of the industry are the youth, sporting events, and
1 Pages(250 words)Essay
Market Segment Analysis (Individual)
In this manner, organizations divide the population of the target market into different segments based on their particular behavior. This research paper would look into the market segmentation strategy Porsche Automobile Holding SE and would present recommendations for the
5 Pages(1250 words)Essay
Operating Segments
The management has an overall positive influence on the quality of the segment information. The relevance and usefulness of the operating segment information have overweighed the expressed concerns on the comparability of the financial report (Behn, 2002). The
6 Pages(1500 words)Essay
When I became a father, I faced the reality of taking care of my children. My support has been from being a role model, provider and mentor. In order for my children to grow well, I have been focused on channeling my efforts
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic The Definition of an Operating Segment for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us