21) What is the total gross profit of the company if there are three departments (A, B, and C) and the net sales are $200,000, $164,000, and $286,000, respectively, and cost of goods sold is $86,000, $92,000, and $82,000, respectively?

A) $390,000

B) $650,000

C) $400,000

D) $260,000

 

22) A company has three departments (A, B, and C) and the net sales are $350,000; $410,000; and $285,000 respectively. The cost of goods sold per department are $295,000; $360,000; and $225,000 respectively. What department has the highest gross profit?

A) A

B) B

C) C

D) Both departments A and B

23) The PPC department of Ajax shows gross sales of $730,600 for computer supplies and $934,900 for office supplies. The cost of the computer supplies was $534,000 and the cost of the office supplies was $491,400. What is the gross profit for each category of the department respectively?

A) $730,600 and $934,900

B) $534,000 and $491,400

C) $239,200 and $400,900

D) $196,600 and $443,500

 

24) The photography department in a department store experienced the following revenue and expenses during October:

 

Sales

$23,500

Cost of Goods Sold

8,200

Direct Operating Expenses

1,000

Indirect Operating Expenses

2,300

 

The photography departmental gross profit on sales is:

A) $15,300.

B) $20,200.

C) $13,000.

D) $14,300.

 

25) All of the following are used to compute gross profit except:

A) sales.

B) purchase returns and allowances.

C) rent expense.

D) purchases.

26) All of the following are used to compute gross profit except:

A) sales.

B) sales returns and allowances.

C) accounts receivable.

D) purchases.

 

27) A profit center and a cost center both generate revenue.

 

28) A profit center and a cost center both generate costs.

 

29) The toy department of a department store would be a cost center.

 

30) A human resource department would be a profit center.

 

 

 



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