Question 1

When a business is organized into separate departments, it is necessary to provide accounting information about each department.

Accepted Answer

A) True 
 B)False

Question 2

City Shoe's office expenses for the year totaled $63,000 and are to be allocated on the basis of the total sales of each department. Using the financial data given below compute the amount allocated to each department.
Total sales:
(1) Women's Shoes, $322,500
(2) Men's Shoes, $270,000
(3) Children's Shoes, $157,500

Accepted Answer

1. $27,090

Question 3

Management decisions involving the elimination of a department should be based on the contribution margin of the department.

Accepted Answer

A) True 
 B)False

Question 4

Department XYZ had sales of $90,000, direct expenses of $60,000 and indirect expenses of $50,000. The indirect expenses allocated to this department would have been incurred whether or not the department existed. If this department had been eliminated, the company's reported net income would have been

Accepted Answer

A)  $20,000 higher. 
B)  $30,000 higher. 
C)  $20,000 lower. 
D)  $30,000 lower. 
A)  $20,000 higher. 
B)  $30,000 higher. 
C)  $20,000 lower. 
D)  $30,000 lower.

Question 5

-Using the information provided, determine and present in good form, the Operating Expenses section of the Income Statement for Cody's Conundrums. Note: The last line item will be Total Indirect Expense.

Accepted Answer

The answer of  
-Using the information provided, determine and...

Question 6

The telephone expense is allocated on the basis of floor space. Department A occupies 1,875 square feet and Department B occupies 625 square feet. If the telephone expense is $600, the amount allocated to Department A is

Accepted Answer

A)  $150. 
B)  $300. 
C)  $450. 
D)  $288. 
A)  $150. 
B)  $300. 
C)  $450. 
D)  $288.

Question 7

Contribution margin is another name for gross profit.

Accepted Answer

A) True 
 B)False

Question 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's contribution margin is

Accepted Answer

A)  $20,000. 
B)  $29,000. 
C)  $26,000. 
D)  $35,000. 
A)  $20,000. 
B)  $29,000. 
C)  $26,000. 
D)  $35,000.

Question 9

Moriah's Creations has two departments, Clothing and Fashion Accessories. The following charge sales were made during the month of September. The Sales tax is 7%. Complete the Sales Journal. Give a brief description of Lily Pad's purchase.

Accepted Answer

@#IMG-DLM& On September 13^th, Lily Pad purchased $34

Question 10

Departmental income statements provide management with information necessary for decision-making. Which of the following is NOT a decision made possible by these statements?

Accepted Answer

A)  where improvements in the profitable departments are needed 
B)  which departments to expand 
C)  whether or not to eliminate a department 
D)  what base to use to allocate costs 
A)  where improvements in the profitable departments are needed 
B)  which departments to expand 
C)  whether or not to eliminate a department 
D)  what base to use to allocate costs

Question 11

Allocated expenses can be rounded to the nearest whole dollar on departmental income statements.

Accepted Answer

A) True 
 B)False

Question 12

The price at which goods are moved from one segment of a company to another is the ____________________ price.

Accepted Answer

The answer of The price at which goods are moved...

Question 13

Which of the following is NOT a cost center?

Accepted Answer

A)  accounting department 
B)  purchasing department 
C)  shoe department 
D)  research laboratory 
A)  accounting department 
B)  purchasing department 
C)  shoe department 
D)  research laboratory

Question 14

A company may have several cost centers, but it can have only one profit center.

Accepted Answer

A) True 
 B)False

Question 15

-Using the information provided, determine and present in good form, the Cost of Goods Sold section of the Income Statement for Cody's Conundrums.

Accepted Answer

The answer of  
-Using the information provided, determine and...

Question 16

-Using the information provided, determine and present in good form, the Gross Profit section of the Income Statement for Cody's Conundrums.

Accepted Answer

The answer of  
-Using the information provided, determine and...

Question 17

One department in a company had a contribution margin of $15,000 and a net loss from operations of $2,000. The indirect expenses allocated to this department would have been incurred whether or not the department existed. If this department had been eliminated, the company's reported net income would have been

Accepted Answer

A)  $2,000 higher. 
B)  $15,000 lower. 
C)  $13,000 lower. 
D)  the same with or without the department. 
A)  $2,000 higher. 
B)  $15,000 lower. 
C)  $13,000 lower. 
D)  the same with or without the department.

Question 18

Barista Coffee Shoppe and Store has two departments. The Store sells ground coffees, coffee beans, grinders, coffee makes, cappuccino machines, mugs, aprons, flavored additives, and flavored creamers. The Shoppe sells brewed coffees. Prepare the gross profit section of the Income Statement for Barista Coffee Shoppe and Store as of its yearend on June 30, 2013 using the information given. Include the proper heading.

Accepted Answer

The answer of Barista Coffee Shoppe and Store has two...

Question 19

If a segment of business is considered a profit center

Accepted Answer

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. 
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.

Question 20

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's net income is

Accepted Answer

A)  $20,000. 
B)  $29,000. 
C)  $26,000. 
D)  $35,000. 
A)  $20,000. 
B)  $29,000. 
C)  $26,000. 
D)  $35,000.

When a business is organized into separate departments, it is necessary to provide accounting information about each department.

Management decisions involving the elimination of a department should be based on the contribution margin of the department.

-Using the information provided, determine and present in good form, the Operating Expenses section of the Income Statement for Cody's Conundrums. Note: The last line item will be Total Indirect Expense.

The telephone expense is allocated on the basis of floor space. Department A occupies 1,875 square feet and Department B occupies 625 square feet. If the telephone expense is $600, the amount allocated to Department A is

Contribution margin is another name for gross profit.

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's contribution margin is

Moriah's Creations has two departments, Clothing and Fashion Accessories. The following charge sales were made during the month of September. The Sales tax is 7%. Complete the Sales Journal. Give a brief description of Lily Pad's purchase.

Departmental income statements provide management with information necessary for decision-making. Which of the following is NOT a decision made possible by these statements?

Allocated expenses can be rounded to the nearest whole dollar on departmental income statements.

The price at which goods are moved from one segment of a company to another is the ____________________ price.

Which of the following is NOT a cost center?

A company may have several cost centers, but it can have only one profit center.

-Using the information provided, determine and present in good form, the Cost of Goods Sold section of the Income Statement for Cody's Conundrums.

-Using the information provided, determine and present in good form, the Gross Profit section of the Income Statement for Cody's Conundrums.

If a segment of business is considered a profit center

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's net income is

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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Exam 25: Departmentalized Profit and Cost Centers

When a business is organized into separate departments, it is necessary to provide accounting information about each department.

Management decisions involving the elimination of a department should be based on the contribution margin of the department.

-Using the information provided, determine and present in good form, the Operating Expenses section of the Income Statement for Cody's Conundrums. Note: The last line item will be Total Indirect Expense.

The telephone expense is allocated on the basis of floor space. Department A occupies 1,875 square feet and Department B occupies 625 square feet. If the telephone expense is $600, the amount allocated to Department A is

Contribution margin is another name for gross profit.

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's contribution margin is

Moriah's Creations has two departments, Clothing and Fashion Accessories. The following charge sales were made during the month of September. The Sales tax is 7%. Complete the Sales Journal. Give a brief description of Lily Pad's purchase.

Departmental income statements provide management with information necessary for decision-making. Which of the following is NOT a decision made possible by these statements?

Allocated expenses can be rounded to the nearest whole dollar on departmental income statements.

The price at which goods are moved from one segment of a company to another is the ____________________ price.

Which of the following is NOT a cost center?

A company may have several cost centers, but it can have only one profit center.

-Using the information provided, determine and present in good form, the Cost of Goods Sold section of the Income Statement for Cody's Conundrums.

-Using the information provided, determine and present in good form, the Gross Profit section of the Income Statement for Cody's Conundrums.

If a segment of business is considered a profit center

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's net income is

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

Filters