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Identify the cash-generating units in the given cases

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Question: Identify the cash-generating unit(s) in the following cases:

(a) A bus company provides services under contract with a municipality that requires minimum service on each of five separate routes. Assets devoted to each route and the cash flows from each route can be identified separately. One of the routes operates at a signicant loss.

(b) A departmental chain has a large number of stores acorss the country. The cash flows of each store can be individually monitored and reasonable allocation of cost to each store can be made.

Reference no: EM132749658

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