Chapter 11 - Quiz

Chapter 11 - Quiz - Accounting 245 Cost Accounting Chapter...

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Accounting 245 – Cost Accounting Chapter 11 Quiz - 10 points Name: _______________________________________ 1. The Kelso Company has two divisions--Eastern and Western. The divisions have the following revenues and expenses: Eastern Western Sales. ............................................................. $450,000 $400,000 Variable expenses. ........................................ 225,000 150,000 Traceable fixed expenses. ............................. 130,000 105,000 Allocated common corporate expenses. ....... 120,000 95,000 Net operating income (loss). ......................... $(25,000 ) $ 50,000 Management of Kelso is considering the elimination of the Eastern Division. If the Eastern Division were eliminated, then its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected. Given these data, the elimination of the Eastern Division would result in an overall company net operating income (loss) of: A) $50,000. B)
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This note was uploaded on 11/24/2010 for the course ACCT 245 taught by Professor B during the Spring '10 term at Oakton.

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Chapter 11 - Quiz - Accounting 245 Cost Accounting Chapter...

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