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What is a segment and provide examples of segments?

What is a segment and provide examples of segments?

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Answer #1

Segment is the part or component of the company which will generate the revenue and cost related to segment's operation. Management of the company seeks the data like Revenue, profit and cost of individual segment

Each segment has separate financial information. company's management will periodically review , compare and analyze individual of the by the company's management

Segmentation in the company based on either product line or different division of the company or it might be based on sales territories

Example of segment

Sales territories or geographical segment(Ex: Western segment, eastern segment)

Different product line segment (EX: Product A segment, Product B segment )

Divisional segment ( Finance division , production division)

               

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