Question 1

A common way to apportion janitorial expense is to base it on gross sales.

Accepted Answer

A) True 
 B)False

Question 2

The photography department in a department store experienced the following revenue and expenses during October: $$\begin{array} { | l | r |} 
\hline \text { Sales } & \$ 11,000 \
\hline \text { Cost of Goods Sold } & 5,000 \
\hline \text { Direct Operating Expenses } & 800 \
\hline \text { Indirect Operating Expenses } & 2,100 \
\hline
\end{array}$$ The photography departmental gross profit on sales is:

Accepted Answer

A) $3,100. 
B) $5,200. 
C) $6,000. 
D) $8,100. 
A) $3,100. 
B) $5,200. 
C) $6,000. 
D) $8,100.

Question 3

The administrative department of a mall is a(n):

Accepted Answer

A) cost center. 
B) profit center. 
C) investment center. 
D) revenue center. 
A) cost center. 
B) profit center. 
C) investment center. 
D) revenue center.

Question 4

A company has four departments (A,B,C and
A)A
B)B
C)C
D)D
D)and the net sales are $35,000; $40,000; $60,000 and $25,000 respectively.The cost of goods sold per department are $25,000; $15,000; $40,000 and $15,000 respectively.What department has the highest gross profit?

Accepted Answer

To determine which department has the hi

Question 5

Departmental accounting requires:

Accepted Answer

A) measuring departmental gross profit. 
B) allocating direct costs to departments. 
C) allocating indirect costs to departments. 
D) None of these answers is correct. 
A) measuring departmental gross profit. 
B) allocating direct costs to departments. 
C) allocating indirect costs to departments. 
D) None of these answers is correct.

Question 6

A company has three departments (A,B,andC)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

Accepted Answer

To determine which department has the hi

Question 7

Julia Company allocates its indirect advertising expenses based on each department's gross sales.If the men's apparel department has gross sales of $225,000 out of a total of $2,025,000 in gross sales,what fraction would Julia use to allocate its indirect advertising expenses?

Accepted Answer

A) 1/9 
B) 1/10 
C) 1/11 
D) 1/8 
A) 1/9 
B) 1/10 
C) 1/11 
D) 1/8

Question 8

Which allocation base is best used to allocate advertising expense by selling department?

Accepted Answer

A) Square feet of spaced used 
B) Gross sales of each department as a percent of total gross sales 
C) An even split among all selling departments 
D) Some other method not listed. 
A) Square feet of spaced used 
B) Gross sales of each department as a percent of total gross sales 
C) An even split among all selling departments 
D) Some other method not listed.

Question 9

Which allocation base is best used to allocate building depreciation?

Accepted Answer

A) Square feet of space used 
B) Number of employees 
C) Hours used 
D) Building depreciation can be separately traced to each department 
A) Square feet of space used 
B) Number of employees 
C) Hours used 
D) Building depreciation can be separately traced to each department

Question 10

A department with sales of $120,000; cost of goods sold of $75,000; and operating expenses of $20,000 has a gross profit of $25,000.

Accepted Answer

A) True 
 B)False

Question 11

If there is a total of 50,000 square feet of floor space,and the hardware department utilizes 12,500 square feet,what percent of the total square footage is in hardware?

Accepted Answer

A) 20% 
B) 25% 
C) 40% 
D) 80% 
A) 20% 
B) 25% 
C) 40% 
D) 80%

Question 12

A department with sales of $120,000; cost of goods sold of $75,000; and operating expenses of $20,000 has a gross profit of $45,000.

Accepted Answer

A) True 
 B)False

Question 13

An example of a cost center is:

Accepted Answer

A) a Holiday Inn. 
B) the restaurant in a motel. 
C) the administrative department in a motel. 
D) the catering department in a motel. 
A) a Holiday Inn. 
B) the restaurant in a motel. 
C) the administrative department in a motel. 
D) the catering department in a motel.

Question 14

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.Direct expenses were $56,600 for the company and indirect expenses were $75,200.What was the contribution margin for the company?

Accepted Answer

A) $640,100 
B) $583,500 
C) $508,300 
D) $564,900 
A) $640,100 
B) $583,500 
C) $508,300 
D) $564,900

Question 15

A company has four departments (A,B,C and
A)A
B)B
C)C
D)and the net sales are $35,000; $40,000; $60,000 and $25,000 respectively.The cost of goods sold per department are $25,000; $15,000; $40,000 and $15,000 respectively.What department has the lowest gross profit?
D)both A and D

Accepted Answer

To determine which department has the lo

Question 16

Trends in the industry,such as advancements in technology,should always be a consideration in determining whether or not a department is eliminated.

Accepted Answer

A) True 
 B)False

Question 17

Calculate a department's gross profit on sales given the following: $$\begin{array} {| l | r |} 
\hline\text { Sales } & \$ 1,600 \
\hline \text { Operating expenses } & 350 \
\hline \text { Cost of goods sold } & 900 \
\hline
\end{array}$$

Accepted Answer

A) $350. 
B) $700. 
C) $1,050. 
D) $1,250. 
A) $350. 
B) $700. 
C) $1,050. 
D) $1,250.

Question 18

Indirect expenses may be allocated to departments based on the cost of goods sold in each department.

Accepted Answer

A) True 
 B)False

Question 19

When a company tracks gross profit by department,the sales journal has separate columns for Accounts Receivable for each department.

Accepted Answer

A) True 
 B)False

Question 20

You have been hired by Jones to allocate his utilities to each department based on space (in square footage).
Complete the assignment.
$$\begin{array} { c c c r } 
&\text { Shoe Dept. } & \text { Jewelry Dept. } & \text { Clothing Dept. } & \text { Total } \
\text {Space (square feet)}&12,000 & 4,000 & 24,000 & 40,000 \
\text {Utilities Cost}& & & \$ 60,000
\end{array}$$

Accepted Answer

Utilities Cost
Shoe: (12,000/4

Exam 24: Departmental Accounting

A common way to apportion janitorial expense is to base it on gross sales.

The photography department in a department store experienced the following revenue and expenses during October: Sales \ 11,000 Cost of Goods Sold 5,000 Direct Operating Expenses 800 Indirect Operating Expenses 2,100 The photography departmental gross profit on sales is:

The administrative department of a mall is a(n):

A company has four departments (A,B,C and A)A B)B C)C D)D D)and the net sales are $35,000; $40,000; $60,000 and $25,000 respectively.The cost of goods sold per department are $25,000; $15,000; $40,000 and $15,000 respectively.What department has the highest gross profit?

Departmental accounting requires:

A company has three departments (A,B,andC)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

Julia Company allocates its indirect advertising expenses based on each department's gross sales.If the men's apparel department has gross sales of $225,000 out of a total of $2,025,000 in gross sales,what fraction would Julia use to allocate its indirect advertising expenses?

Which allocation base is best used to allocate advertising expense by selling department?

Which allocation base is best used to allocate building depreciation?

A department with sales of $120,000; cost of goods sold of $75,000; and operating expenses of $20,000 has a gross profit of $25,000.

If there is a total of 50,000 square feet of floor space,and the hardware department utilizes 12,500 square feet,what percent of the total square footage is in hardware?

A department with sales of $120,000; cost of goods sold of $75,000; and operating expenses of $20,000 has a gross profit of $45,000.

An example of a cost center is:

A company has four departments (A,B,C and A)A B)B C)C D)and the net sales are $35,000; $40,000; $60,000 and $25,000 respectively.The cost of goods sold per department are $25,000; $15,000; $40,000 and $15,000 respectively.What department has the lowest gross profit? D)both A and D

Trends in the industry,such as advancements in technology,should always be a consideration in determining whether or not a department is eliminated.

Calculate a department's gross profit on sales given the following: Sales \ 1,600 Operating expenses 350 Cost of goods sold 900

Indirect expenses may be allocated to departments based on the cost of goods sold in each department.

When a company tracks gross profit by department,the sales journal has separate columns for Accounts Receivable for each department.

You have been hired by Jones to allocate his utilities to each department based on space (in square footage). Complete the assignment. Shoe Dept. Jewelry Dept. Clothing Dept. Total Space (square feet) 12,000 4,000 24,000 40,000 Utilities Cost \ 60,000

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, plant, equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Manufacturing Accounting

Filters