Segment Reporting and Segment Profitability: A Case Study on General Electric

Abstract

This case study uses segment data from General Electric’s SEC filings to provide students in managerial and cost accounting courses the opportunity to see how a variety of classroom topics apply to a real-world company. Students are required to find relevant segment-related data in 10-Ks. By using financial accounting data to make managerial accounting decisions, the case serves as a link between financial and managerial accounting. This case has four independent requirements that focus on a different topic related to segment reporting: (1) segment performance measures, (2) segment profitability, (3) segment decision-making, and (4) segment reporting changes as connected to corporate structure and strategy. In each requirement, students are asked to prepare a memo and supporting analysis based on the relevant segment-related data. The modular nature of the case provides instructors with flexibility for implementation in a variety of managerial and cost accounting courses at the undergraduate and graduate levels. JEL Classifications: M40; M41.