The espresso department experienced the following revenue and expenses during October: \[\begin{array} { | l | r | } \hline \text { Sales } & \$ 17,000 \\ \hline \text { Cost of Goods Sold } & 9,000 \\ \hline \text { Direct Operating Expenses } & 4,000 \\ \hline \text { Indirect Operating Expenses } & 2,000 \\ \hline \end{array}\] The espresso departmental gross profit on sales is:

A) $2,000. B) $4,000. C) $8,000. D) $11,000. A) $2,000. B) $4,000. C) $8,000. D) $11,000.

Prepare an income statement showing departmental contribution margin based on the following: \[\begin{array} { l r r r } & \text { Dept. X } & \text { Dept. Y } & \text { Rent Expense } \\ \text { Space (square feet) } & 17,500 & 35,000 & \\ \text { Net Sales } & \$ 60,000 & \$ 40,000 & \\ \text { Cost of Goods Sold } & 18,000 & 16,000 & \\ \text { Rent Expense (allocated based on square feet) } & & & \$ 2,700 \end{array}\]

\[\begin{array} { l l l l } & \text {

Exam 24: Departmental Accounting

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Sports apparel department's gross profit is $300,000; clothing department gross profit is $200,000; indirect advertising expense is $6,000.Indirect expense charged to the sports apparel department based on gross profit would be $3,600.

(True/False)

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Question 81

The espresso department experienced the following revenue and expenses during October: Sales \ 17,000 Cost of Goods Sold 9,000 Direct Operating Expenses 4,000 Indirect Operating Expenses 2,000 The espresso departmental gross profit on sales is:

(Multiple Choice)

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Question 82

Which of the following is not a direct departmental expense in a sales department?

(Multiple Choice)

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Question 83

A net income would occur if the contribution margin is less than indirect expenses.

(True/False)

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Question 84

Departmental income statements are prepared to indicate how well each department is performing.

(True/False)

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Question 85

To calculate departmental gross profit,separate accounts should be set up for Sales,Purchases,etc.,for each department.

(True/False)

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Question 86

Explain the difference between a "cost center" and a "profit center."

(Short Answer)

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Question 87

A department with sales of $80,000 and cost of goods sold of $55,000 has a gross profit of $25,000.

(True/False)

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Question 88

Carla's building expenses,which are indirect,are based on each department's square footage.Department A occupies 35,000 square feet.Department B occupies 55,000 square feet,and Department C occupies 10,000 square feet.If the building expenses total $250,000,how much is allocated to Department B?

(Multiple Choice)

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Question 89

To calculate gross profit,subtract cost of goods sold from net sales.

(True/False)

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Question 90

If gross sales for the tools department are $500,000 and gross sales for the appliances department are $300,000,what is the fraction used to apportion the indirect advertising for the appliances department if it is based on gross sales?

(Multiple Choice)

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Question 91

Most companies that prepare departmental income statements also prepare departmental balance sheets.

(True/False)

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Question 92

The sales department of a construction firm is a(n):

(Multiple Choice)

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Question 93

Prepare an income statement showing departmental contribution margin based on the following: Dept. X Dept. Y Rent Expense Space (square feet) 17,500 35,000 Net Sales \ 60,000 \ 40,000 Cost of Goods Sold 18,000 16,000 Rent Expense (allocated based on square feet) \ 2,700

(Essay)

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Question 94

What is the purpose for determining contribution margin?

(Multiple Choice)

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Question 95

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

(Multiple Choice)

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Question 96

A cost center is evaluated on the volume of revenues generated.

(True/False)

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Question 97

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

(Multiple Choice)

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Question 98

Indirect expenses are normally:

(Multiple Choice)

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Question 99

A maintenance department would be an example of a:

(Multiple Choice)

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Question 100

Showing 81 - 100 of 120

Exam 24: Departmental Accounting

Sports apparel department's gross profit is $300,000; clothing department gross profit is $200,000; indirect advertising expense is $6,000.Indirect expense charged to the sports apparel department based on gross profit would be $3,600.

The espresso department experienced the following revenue and expenses during October: Sales \ 17,000 Cost of Goods Sold 9,000 Direct Operating Expenses 4,000 Indirect Operating Expenses 2,000 The espresso departmental gross profit on sales is:

Which of the following is not a direct departmental expense in a sales department?

A net income would occur if the contribution margin is less than indirect expenses.

Departmental income statements are prepared to indicate how well each department is performing.

To calculate departmental gross profit,separate accounts should be set up for Sales,Purchases,etc.,for each department.

Explain the difference between a "cost center" and a "profit center."

A department with sales of $80,000 and cost of goods sold of $55,000 has a gross profit of $25,000.

Carla's building expenses,which are indirect,are based on each department's square footage.Department A occupies 35,000 square feet.Department B occupies 55,000 square feet,and Department C occupies 10,000 square feet.If the building expenses total $250,000,how much is allocated to Department B?

To calculate gross profit,subtract cost of goods sold from net sales.

If gross sales for the tools department are $500,000 and gross sales for the appliances department are $300,000,what is the fraction used to apportion the indirect advertising for the appliances department if it is based on gross sales?

Most companies that prepare departmental income statements also prepare departmental balance sheets.

The sales department of a construction firm is a(n):

Prepare an income statement showing departmental contribution margin based on the following: Dept. X Dept. Y Rent Expense Space (square feet) 17,500 35,000 Net Sales \ 60,000 \ 40,000 Cost of Goods Sold 18,000 16,000 Rent Expense (allocated based on square feet) \ 2,700

What is the purpose for determining contribution margin?

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

A cost center is evaluated on the volume of revenues generated.

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

Indirect expenses are normally:

A maintenance department would be an example of a:

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

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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

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Accounting for Property, plant, equipment, and Intangible Assets

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