Question 1

A common way to apportion janitorial expense is to base it on number of employees.

Accepted Answer

A) True 
 B)False

Question 2

To calculate gross profit, subtract sales expense from net sales.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

If the property, plant, and equipment cannot be traced to a specific department, depreciation expense is a(n):

Accepted Answer

A)  direct expense. 
B)  indirect expense. 
C)  cash expense. 
D)  sales expense. 
A)  direct expense. 
B)  indirect expense. 
C)  cash expense. 
D)  sales expense.

Question 5

You have been hired by Jones to allocate his utilities to each department based on space (in square footage).
Complete the assignment.

Accepted Answer

Utilities Cost
Shoe: (32,000/8

Question 6

If the gross sales for the computer department are $60,000 and the book department gross sales are $40,000, what is the allocation for advertising expense of $16,000 to these departments, based on gross sales?

Accepted Answer

A)  Computer department $9,600; book department $6,400 
B)  Computer department $8,000; book department $8,000 
C)  Computer department $6,400; book department $9,600 
D)  Computer department $60,000; book department $40,000 
A)  Computer department $9,600; book department $6,400 
B)  Computer department $8,000; book department $8,000 
C)  Computer department $6,400; book department $9,600 
D)  Computer department $60,000; book department $40,000

Question 7

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)  Electric usage 
A)  Square feet of space used 
B)  Number of employees 
C)  Hours used 
D)  Electric usage

Question 8

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

Question 9

The photography department in a department store experienced the following revenue and expenses during October:   The photography departmental net income is:

Accepted Answer

A)  $6,600. 
B)  $4,600. 
C)  $3,700. 
D)  $4,400. 
A)  $6,600. 
B)  $4,600. 
C)  $3,700. 
D)  $4,400.

Question 10

The difference between a department's gross profit and its operating expenses is known as the:

Accepted Answer

A)  departmental operating margin. 
B)  departmental operating cost. 
C)  departmental operating income. 
D)  departmental gross profit. 
A)  departmental operating margin. 
B)  departmental operating cost. 
C)  departmental operating income. 
D)  departmental gross profit.

Question 11

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

Accepted Answer

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

Question 12

A company has four departments (A, B, C and D) and the net sales are $30,000; $35,000; $60,000 and $20,000 respectively. The cost of goods sold per department is $25,000; $15,000; $10,000 and $15,000 respectively. What department has the highest dollar gross profit?

Accepted Answer

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

Question 13

A cost center is evaluated on the amount of costs it incurs.

Accepted Answer

A) True 
 B)False

Question 14

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 15

The women's shoe department shows gross sales of $300,000 with the cost of the shoes $140,000. The men's shoe department shows gross sales of $150,000 with the cost of the shoes $120,000. What is the gross profit for each department respectively?

Accepted Answer

A)  $440,000 and $270,000 
B)  $150,000 and $20,000 
C)  $160,000 and $30,000 
D)  $150,000 and $10,000 
A)  $440,000 and $270,000 
B)  $150,000 and $20,000 
C)  $160,000 and $30,000 
D)  $150,000 and $10,000

Question 16

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.   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:

Accepted Answer

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

Question 17

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

Accepted Answer

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

Question 18

General expenses are:

Accepted Answer

A)  indirect expenses. 
B)  direct expenses. 
C)  not broken down by department. 
D)  All of these answers are correct. 
A)  indirect expenses. 
B)  direct expenses. 
C)  not broken down by department. 
D)  All of these answers are correct.

Question 19

Joyful Praises Corporation has total advertising expenses of $83,000: $31,000 for radio advertising and $52,000 for print advertising. The print advertising is allocated to Departments A and B based on net sales generated in each department. Department A has net sales of $462,000 and Department B has net sales of $308,000. How much of the print advertising should be allocated to Department A?

Accepted Answer

A)  $12,400 
B)  $32,578 
C)  $52,000 
D)  $31,200 
A)  $12,400 
B)  $32,578 
C)  $52,000 
D)  $31,200

Question 20

Calculate a department's gross profit given the following:

Accepted Answer

A)  $770 
B)  $1,620 
C)  $1,070 
D)  $550 
A)  $770 
B)  $1,620 
C)  $1,070 
D)  $550

Exam 24: Departmental Accounting

A common way to apportion janitorial expense is to base it on number of employees.

To calculate gross profit, subtract sales expense from net sales.

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

If the property, plant, and equipment cannot be traced to a specific department, depreciation expense is a(n):

You have been hired by Jones to allocate his utilities to each department based on space (in square footage). Complete the assignment.

If the gross sales for the computer department are $60,000 and the book department gross sales are $40,000, what is the allocation for advertising expense of $16,000 to these departments, based on gross sales?

Which allocation base is best used to allocate building depreciation?

An example of a cost center is:

The photography department in a department store experienced the following revenue and expenses during October: The photography departmental net income is:

The difference between a department's gross profit and its operating expenses is known as the:

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

A company has four departments (A, B, C and D) and the net sales are $30,000; $35,000; $60,000 and $20,000 respectively. The cost of goods sold per department is $25,000; $15,000; $10,000 and $15,000 respectively. What department has the highest dollar gross profit?

A cost center is evaluated on the amount of costs it incurs.

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 women's shoe department shows gross sales of $300,000 with the cost of the shoes $140,000. The men's shoe department shows gross sales of $150,000 with the cost of the shoes $120,000. What is the gross profit for each department respectively?

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

General expenses are:

Calculate a department's gross profit given the following:

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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