Question 1

Below is a list of departments; you are to identify each as either [1] a profit center or [2] a cost center.
-The snack shop for a ski resort.________

Accepted Answer

The answer of Below is a list of departments; you...

Question 2

The cosmetic department experienced the following revenue and expenses during December:
$$\begin{array} { | l | r | } 
\hline \text { Sales } & \$ 86,000 \
\hline \text { Cost of Goods Sold } & 30,000 \
\hline \text { Direct Operating Expenses } & 9,000 \
\hline \text { Indirect Operating Expenses } & 3,000 \
\hline
\end{array}$$
The cosmetic department's contribution margin is:

Accepted Answer

A) $57,000. 
B) $44,000. 
C) $53,000. 
D) $47,000. 
A) $57,000. 
B) $44,000. 
C) $53,000. 
D) $47,000.

Question 3

A unit or department that incurs costs and generates revenues is known as a:

Accepted Answer

A) cost center 
B) profit center 
C) revenue center 
D) None of these answers is correct. 
A) cost center 
B) profit center 
C) revenue center 
D) None of these answers is correct.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Departmental income statements would be a useful to tool for management to determine the viability of a department.

Accepted Answer

A) True 
 B)False

Question 6

Below is a list of departments; you are to identify each as either [1] a profit center or [2] a cost center.
-The meat department for a food store.________

Accepted Answer

The answer of Below is a list of departments; you...

Question 7

Below is a list of departments; you are to identify each as either [1] a profit center or [2] a cost center.
-The warehouse area for a wholesale club.________

Accepted Answer

The answer of Below is a list of departments; you...

Question 8

A company has four departments (A,B,C and D)and the net sales are $35,000;$40,000;$60,000 and $25,000 respectively.The cost of goods sold per department is $25,000;$15,000;$30,000 and $15,000 respectively.What department has the highest gross profit?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
A) A 
B) B 
C) C 
D) D

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) sales. 
B) purchase returns and allowances. 
C) rent expense. 
D) purchases. 
A) sales. 
B) purchase returns and allowances. 
C) rent expense. 
D) purchases.

Question 11

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 12

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?

Accepted Answer

A) $83,333 
B) $137,500 
C) $87,500 
D) $25,000 
A) $83,333 
B) $137,500 
C) $87,500 
D) $25,000

Question 13

Below is a list of departments; you are to identify each as either [1] a profit center or [2] a cost center.
-The maintenance office of a mall.________

Accepted Answer

The answer of Below is a list of departments; you...

Question 14

Compute net income for the housewares department,when gross profit is $650,000,direct expenses $235,000,indirect expenses are $90,000 and sales are $875,000.

Accepted Answer

A) ($20,000) 
B) $530,000 
C) $205,000 
D) $325,000 
A) ($20,000) 
B) $530,000 
C) $205,000 
D) $325,000

Question 15

Calculate a department's gross profit given the following:
$$\begin{array} {| l | r| } 
\hline\text { Sales } & \$ 1,950 \
\hline \text { Operating expenses } & 400 \
\hline \text { Cost of goods sold } & 900 \
\hline
\end{array}$$

Accepted Answer

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

Question 16

A common way to apportion janitorial expense is to base it on square footage.

Accepted Answer

A) True 
 B)False

Question 17

Sports Galore is trying to allocate its building's depreciation based on floor space.Determine the amount that should be assigned to the golf department and to the basketball department.
 $$\begin{array} { l c c r } 
& \text { Golf } & \text { Basketball } & \text { Total } \
\text { Floor Space } & 75,000 & 125,000 & 200,000 \
\text { Depreciation Exp } & & & \$ 40,000
\end{array}$$

Accepted Answer

Apportionment of depreciation

Question 18

Indirect expenses are subjective in nature and may be allocated in a number of ways.

Accepted Answer

A) True 
 B)False

Question 19

From the following partial data,prepare a departmental income statement showing income before tax along with net income for Mason Corporation for the month ended December 31.
 $\begin{array} { l r } \text { Net Sales-Sporting Coods } & \$ 3,000 \ \text { Net Sales-Shoes } & 1,500 \ \text { Cost of Goods Sold-Sporting Coods } & 1,950 \ \text { Cost of Goods Sold-Shoes } & 900 \end{array}$
Income Tax Rate is $30 \%$
Sporting Goods Dept. $- 5,000$ square feet
Shoe Dept. $- 3,000$ square feet 
The following items are indirect expenses and should be allocated:
 $$\begin{array}{l}
\begin{array} { l r l }
&\text { Basis of Appropriation }\ 
\text { Building Expense } & \$ 240 & \text { Square Footage } \
\text { Delivery Expense } & \$ 135 & \text { Net Sales } \
\text { Depreciation Expense } & \$ 40 & \text { Square Footage }
\end{array}
\end{array}$$

Accepted Answer

The answer of From the following partial data,prepare a departmental...

Question 20

Wages paid to the supervisor of an automobile repair shop.________

Accepted Answer

The answer of Wages paid to the supervisor of an...

Exam 24: Departmental Accounting

Below is a list of departments; you are to identify each as either [1] a profit center or [2] a cost center. -The snack shop for a ski resort.________

The cosmetic department experienced the following revenue and expenses during December: Sales \ 86,000 Cost of Goods Sold 30,000 Direct Operating Expenses 9,000 Indirect Operating Expenses 3,000 The cosmetic department's contribution margin is:

A unit or department that incurs costs and generates revenues is known as a:

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

Departmental income statements would be a useful to tool for management to determine the viability of a department.

Below is a list of departments; you are to identify each as either [1] a profit center or [2] a cost center. -The meat department for a food store.________

Below is a list of departments; you are to identify each as either [1] a profit center or [2] a cost center. -The warehouse area for a wholesale club.________

A company has four departments (A,B,C and D)and the net sales are $35,000;$40,000;$60,000 and $25,000 respectively.The cost of goods sold per department is $25,000;$15,000;$30,000 and $15,000 respectively.What department has the highest gross profit?

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

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

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.

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?

Below is a list of departments; you are to identify each as either [1] a profit center or [2] a cost center. -The maintenance office of a mall.________

Compute net income for the housewares department,when gross profit is $650,000,direct expenses $235,000,indirect expenses are $90,000 and sales are $875,000.

Calculate a department's gross profit given the following: Sales \ 1,950 Operating expenses 400 Cost of goods sold 900

A common way to apportion janitorial expense is to base it on square footage.

Sports Galore is trying to allocate its building's depreciation based on floor space.Determine the amount that should be assigned to the golf department and to the basketball department. Golf Basketball Total Floor Space 75,000 125,000 200,000 Depreciation Exp \ 40,000

Indirect expenses are subjective in nature and may be allocated in a number of ways.

Wages paid to the supervisor of an automobile repair shop.________

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:

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,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Manufacturing Accounting

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