51) The warehouse area for a wholesale club.________

52) The cosmetic counter of a major retailer________

 

53) The repair shop area of an airline.________

 

54) The tax offices of a CPA firm.________

 

55) The repair center of a car dealership.________

 

56) The reservations call center for a hotel chain.________

 

24.2   Learning Objective 24-2

 

1) The difference between a department’s gross profit and its operating expenses is known as the:

A) departmental operating margin.

B) departmental operating cost.

C) departmental operating income.

D) departmental gross profit.

2) Indirect expenses are allocated to departments based on:

A) decisions of the stockholders.

B) directives from the board of directors.

C) some reasonable basis, such as square footage.

D) generally accepted accounting principles.

 

3) To determine how each profit center is performing, management would analyze the:

A) income tax rate.

B) indirect expenses.

C) gross profit for each profit center.

D) other expenses.

 

4) Direct expenses are those expenses that:

A) can be identified with a specific department.

B) cannot be identified with a specific department.

C) can be identified with more than one department.

D) None of these answers are correct.

 

 

 



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