Segment Accounting Example

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The writer looks at the case of Mr. Chips. Using figures provided the sales and costs are assessed using segment accounting in order to determine which of the segments is most profitable and to look at the degree to which contracts may be adjusted. A buyers; Buy 4 Less, wants the price to be decreased and terms to be adjusted. Segment accounting is used to assess the new costs to the firm and potential profit of the contract. Advice is given to Mr. Chips. Three sources are cited in the bibliography of this five page paper.