Asked by
Evelyn Miller
on Nov 12, 2024
Verified
Income from operations of the Pierce Automobile Division is $2,225,000. If income from operations before service department charges is $3,250,000,
A) operating expenses are $1,025,000
B) total service department charges are $1,025,000
C) noncontrollable charges are $1,025,000
D) direct manufacturing charges are $1,025,000
Service Department Charges
Costs allocated to the various service departments within an organization, typically for internal accounting purposes.
Income from Operations
The profit realized from a business's ongoing operations, calculated before taxes and interests, reflecting the efficiency of the core business activities.
- Comprehend the distribution of charges from service departments and additional costs, and how they influence the performance of specific departments and the company as a whole.
- Understand the appraisal methods and reports pertinent to distinct categories of accountability units.
Verified Answer
MA
Learning Objectives
- Comprehend the distribution of charges from service departments and additional costs, and how they influence the performance of specific departments and the company as a whole.
- Understand the appraisal methods and reports pertinent to distinct categories of accountability units.
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