2011-01-25_132529_financial_accounting_quiz_2 (1) - lesson 5 1.Expenses that are closely related to a particular department and can easily be assigned

2011-01-25_132529_financial_accounting_quiz_2 (1) - lesson...

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lesson 51.Expenses that are closely related to a particular department and can easily be assigned to it during an accounting period are called _ expenses. a.operating b.indirect c.allocated d.direct2.In a store with several sales departments, departmentalized accounts would be used for: . 3.A department probably would be considered for elimination if it had a: 4. The procedure for assigning indirect expenses to departments at the end of an accounting period is called: 5.If a segment of business is considered a profit center: a.it must sell products or services to customers outside the business. b.both revenue and cost data must be accumulated for the segment. c.no indirect expenses can be allocated to the segment. d.only revenue is accumulated for the segment. 6.The contribution margin of a department is the difference between its:
7.A transfer price is the: 8.Department B had net sales of $70,000, gross profit on sales of$35,000, total direct expenses of $9,000, and total indirect expenses of $6,000. Department B'g contribution margin is: 9.Department A had total sales of $84,000 and Department B had total sales of$36,000. Other Office Expenses, totaling $2,500, are allocated on the basis of total sales. The amount allocated to Department B is: a.$750.b.$1,750. c.$1,250. d.$1,071.

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