Question 1

Below is a list of expenses; you are to identify each as either [1] a direct expense or [2] an indirect expense.
-Wages paid to the restaurant wait staff. ________

Accepted Answer

The answer of Below is a list of expenses; you...

Question 2

Below is a list of departments; you are to identify each as either [1] a profit center or [2] a cost center.
-The housekeeping department for a hotel chain. ________

Accepted Answer

2

Question 3

Which of the following expenses is the most difficult to allocate to departments?

Accepted Answer

A)   Cost of goods sold
B)   Use of common supplies by everyone
C)   Salaries and wages
D)   Merchandise purchasesE) All of the above
F) None of the above

Question 4

Why would it be advisable for a company to keep separate accounting records for various departments?

Accepted Answer

Management needs to measure the efficien...

Question 5

Which of the following would be a direct expense for a shoe department in a department store?

Accepted Answer

A)   Depreciation expense
B)   Salary expense of shoe department sales staff
C)   Building expense
D)   Administrative expenseE) B) and D)
F) B) and C)

Question 6

A company has four departments (A, B, C and D)  and the net sales are $30,000; $50,000; $60,000 and $35,000 respectively. The cost of goods sold per department is $25,000; $15,000; $40,000 and $15,000 respectively. What department has the lowest dollar gross profit?

Accepted Answer

A)   A
B)   B
C)   C
D)   both A and DE) B) and C)
F) B) and D)

Question 7

Of two departments, the men's department has 10,000 square feet and the women's department has 24,000 square feet. Depreciation is divided by square footage. If total depreciation is $70,000, the total amount allocated to the men's department would be approximately $56,000.

Accepted Answer

A) True 
 B)False

Question 8

What is the total gross profit of the company if there are three departments (A, B, and C)  and the net sales are $210,000, $178,000, and $289,000, respectively, and cost of goods sold is $135,000, $142,000, and $125,000, respectively?

Accepted Answer

A)   $124,000
B)   $86,000
C)   $275,000
D)   $207,000E) B) and D)
F) C) and D) C

Question 9

A building's depreciation would be considered an indirect expense.

Accepted Answer

A) True 
 B)False

Question 10

Compute the contribution margin for the video department, when gross profit is $990,000, direct expenses $290,000, and indirect expenses are $120,000.

Accepted Answer

A)   $1,110,000
B)   $700,000
C)   $580,000
D)   $870,000E) A) and B)
F) B) and C)

Question 11

When a department showing a loss is eliminated, other departments will always achieve a greater contribution margin.

Accepted Answer

A) True 
 B)False

Question 12

Below is a list of expenses; you are to identify each as either [1] a direct expense or [2] an indirect expense.
-Paint used by painting department. ________

Accepted Answer

The answer of Below is a list of expenses; you...

Question 13

Eliminating one department may increase the sales of another department.

Accepted Answer

A) True 
 B)False  True

Question 14

Below is a list of expenses; you are to identify each as either [1] a direct expense or [2] an indirect expense.
-Electricity for the general lighting in a department store. ________

Accepted Answer

The answer of Below is a list of expenses; you...

Question 15

Below is a list of expenses; you are to identify each as either [1] a direct expense or [2] an indirect expense.
-Paint for the restaurant dining room. ________

Accepted Answer

The answer of Below is a list of expenses; you...

Question 16

A cost center only generates revenues.

Accepted Answer

A) True 
 B)False

Question 17

Below is a list of expenses (direct and indirect). You are to determine the total direct cost for departments A and B.   
Direct cost for department A $ ________ B $ ________

Accepted Answer

Direct cost for department A $...

Question 18

Below is a list of expenses; you are to identify each as either [1] a direct expense or [2] an indirect expense.
-General employee insurance. ________

Accepted Answer

The answer of Below is a list of expenses; you...

Question 19

The Popper's candy department experienced the following revenue and expenses during October: 
 The candy departmental net income is:

Accepted Answer

A)   $12,100.
B)   $4,900.
C)   $4,500.
D)   $12,500.E) A) and B)
F) B) and C)

Question 20

Supporters of the contribution margin approach believe that:

Accepted Answer

A)   indirect expenses should be departmentalized.
B)   indirect expenses should not be used for evaluating departmental performance.
C)   indirect expenses are proportionally charged to each department.
D)   direct expenses should not be used in evaluating departmental performance.E) A) and C)
F) B) and C)

Exam 24: Departmental Accounting

Below is a list of expenses; you are to identify each as either [1] a direct expense or [2] an indirect expense. -Wages paid to the restaurant wait staff. ________

Correct AnswerverifiedShow Answer

Below is a list of departments; you are to identify each as either [1] a profit center or [2] a cost center. -The housekeeping department for a hotel chain. ________

Correct Answerverified2

Which of the following expenses is the most difficult to allocate to departments?

Correct AnswerverifiedShow Answer

Why would it be advisable for a company to keep separate accounting records for various departments?

Correct AnswerverifiedManagement needs to measure the efficien...View AnswerShow Answer

Which of the following would be a direct expense for a shoe department in a department store?

Correct AnswerverifiedShow Answer

A company has four departments (A, B, C and D) and the net sales are $30,000; $50,000; $60,000 and $35,000 respectively. The cost of goods sold per department is $25,000; $15,000; $40,000 and $15,000 respectively. What department has the lowest dollar gross profit?

Correct AnswerverifiedShow Answer

Of two departments, the men's department has 10,000 square feet and the women's department has 24,000 square feet. Depreciation is divided by square footage. If total depreciation is $70,000, the total amount allocated to the men's department would be approximately $56,000.

Correct AnswerverifiedShow Answer

What is the total gross profit of the company if there are three departments (A, B, and C) and the net sales are $210,000, $178,000, and $289,000, respectively, and cost of goods sold is $135,000, $142,000, and $125,000, respectively?

Correct AnswerverifiedC

A building's depreciation would be considered an indirect expense.

Correct AnswerverifiedShow Answer

Compute the contribution margin for the video department, when gross profit is $990,000, direct expenses $290,000, and indirect expenses are $120,000.

Correct AnswerverifiedShow Answer

When a department showing a loss is eliminated, other departments will always achieve a greater contribution margin.

Correct AnswerverifiedShow Answer

Below is a list of expenses; you are to identify each as either [1] a direct expense or [2] an indirect expense. -Paint used by painting department. ________

Correct AnswerverifiedShow Answer

Eliminating one department may increase the sales of another department.

Correct AnswerverifiedTrue

Below is a list of expenses; you are to identify each as either [1] a direct expense or [2] an indirect expense. -Electricity for the general lighting in a department store. ________

Correct AnswerverifiedShow Answer

Below is a list of expenses; you are to identify each as either [1] a direct expense or [2] an indirect expense. -Paint for the restaurant dining room. ________

Correct AnswerverifiedShow Answer

A cost center only generates revenues.

Correct AnswerverifiedShow Answer

Below is a list of expenses (direct and indirect). You are to determine the total direct cost for departments A and B. Direct cost for department A $ ________ B $ ________

Correct AnswerverifiedDirect cost for department A $...View AnswerShow Answer

Below is a list of expenses; you are to identify each as either [1] a direct expense or [2] an indirect expense. -General employee insurance. ________

Correct AnswerverifiedShow Answer

The Popper's candy department experienced the following revenue and expenses during October: The candy departmental net income is:

Correct AnswerverifiedShow Answer

Supporters of the contribution margin approach believe that:

Correct AnswerverifiedShow Answer

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2

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Management needs to measure the efficien...
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C

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True

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Below is a list of expenses (direct and indirect). You are to determine the total direct cost for departments A and B. Direct cost for department A $ B $

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Direct cost for department A $...
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