Question :
61.In a store with several sales departments, departmentalized accounts would : 1169209
61.In a store with several sales departments, departmentalized accounts would be used for
A. sales only.
B. sales, purchases, and merchandise inventory.
C. sales and other income items only.
D. all expense accounts.
62.Indirect expenses of the human resource department within a company might include:
A. wages of the human resource manager.
B. benefits of the department secretary.
C. rent expense.
D. supplies ordered and used by the department.
63.TBS Toys purchases a product from overseas including insurance and shipping costs for $65 per unit. TBS marks the toy up 30% to $84.50. Other traceable direct costs amount to $4.50 per unit. The indirect costs associated with this product amount to $45,000. How many toys must TBS sell in order to break even?
A. 1,875.
B. 2,308.
C. 3,000.
D. 2,250.
64.A department probably would be considered for elimination if it had
A. a positive contribution margin and a net income from operations.
B. a positive contribution margin and a net loss from operations.
C. a negative contribution margin and a net loss from operations.
D. a net loss, regardless of the contribution margin.
65.The procedure for assigning indirect expenses to departments at the end of an accounting period is called
A. valuation.
B. amortization.
C. allocation.
D. distribution.
66.If a segment of business is considered a profit center
A. it must sell products or services to customers outside the business.
B. both revenue and cost data must be accumulated for the segment.
C. no indirect expenses can be allocated to the segment.
D. only revenue is accumulated for the segment.
67.The contribution margin of a department is the difference between
A. its net sales and the total expenses.
B. its net sales and its cost of goods sold.
C. its gross profit on sales and its indirect expenses.
D. its gross profit on sales and its direct expenses.
68.Which of the following measurements provides a better basis for eliminating a department?
A. Positive contribution margin and income from operations.
B. Fixed and variable expenses exceed contribution margin.
C. Fixed expenses exceed contribution margin.
D. Contribution margin equals fixed expenses.
69.A transfer price is
A. the price for which a company sells its products to customers.
B. the price at which goods are moved from one department of a company to another department of the company.
C. the basis on which indirect expenses are allocated.
D. the price at which a company purchases its products from a supplier.
70.Department B had net sales of $70,000, gross profit on sales of $35,000, total direct expenses of $9,000, and total indirect expenses of $6,000. Department B’s contribution margin is
A. $20,000.
B. $29,000.
C. $26,000.
D. $35,000.
