Abstract
The purpose of this study was to collect empirical evidence concerning the investor decision relevance and usefulness of alternative intersegment cost allocation methods employed in current segmental financial disclosure of diversified firms. A random sample of 128 diversified firms which have disclosed segment financial data in the Form 10-Ks of the Securities and Exchange Commission was obtained. The Form 10-Ks of individual sample firms were studied for the years of 1971 through 1975 for the purpose of identifying their methods of allocating costs by segments. As a result, they were classified by allocation-treatment groups of (1) no-allocation firms, (2) firms employing "segment-contribution" approach, (3) firms employing "segment - income" approach, and (4) firms employing allocation methods inconsistently from one accounting period to another.
Kang, Jai Seong (1977). A study of intersegment allocation problems in segmental financial disclosure. Texas A&M University. Texas A&M University. Libraries. Available electronically from
https : / /hdl .handle .net /1969 .1 /DISSERTATIONS -357349.