To compute operating income, total support department allocations are

A) added to operating income before support department allocations
B) subtracted from operating expenses
C) subtracted from operating income before support department allocations
D) subtracted from gross profit

Support Department Allocations

The process of distributing the costs of support departments (e.g., human resources, maintenance) to producing departments based on their usage of services.

Operating Income Before

Income generated from normal business operations before deductions such as taxes and interest.