College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 25, Problem 5TF

Departmental direct operating margin is the difference between a department’s gross profit and its direct operating expenses.

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The difference between a department’s net sales and cost of goods sold is called (a) departmental gross profit. (b) departmental direct operating income. (c) departmental operating income. (d) net income.
The difference between a department is gross profit and it's expenses is ____ .
When an organization allocated indirect costs to departments by relative size of the budgets, it is based on the criterion of benefits received. (T/F)

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College Accounting, Chapters 1-27

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