Tag Archives | Segmentation

Selecting an Appropriate Basis of Segmentation

In this article we will discuss about selecting an appropriate basis of segmentation. The appropriateness of a basis of segmentation should be decided in terms of its relevance to external users for decision-making purposes. Generally speaking, that segment is material for users which show significantly different rates of profitability, diverse degrees of risk or varying […]

Bases of Segmentation of a Diversified Company

A diversified company, generally speaking, can be dissected according to one or more of the following bases: Base # 1. Organisational Division: The term ‘division’ has different meanings in different companies. Most commonly, the term ‘division’ refers to the use of company operating structure or organisation charts as a basis for segmenting operations into reporting […]

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