Asked by
GRACE MENESES
on Dec 16, 2024
Verified
Division A reported income from operations of $975,000 and total service department charges of $675,000. As a result,
A) net income was $300,000
B) the gross profit margin was $300,000
C) income from operations before service department charges was $1,650,000
D) consolidated net income was $300,000
Service Department Charges
These are the costs allocated to the production departments from service departments within a company, assisting in accurately assessing the cost of production.
Income from Operations
An alternative term for Operating Income, highlighting earnings generated from a company's regular business activities.
- Understand the allocation of service department charges and other expenses, and their effects on both departmental and overall company performance.
- Acquire knowledge on the assessment metrics and documentation for various responsibility divisions.
Verified Answer
YY
Learning Objectives
- Understand the allocation of service department charges and other expenses, and their effects on both departmental and overall company performance.
- Acquire knowledge on the assessment metrics and documentation for various responsibility divisions.
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