Which of the Following Is Not a Step in Creating

question 94

Multiple Choice

Which of the following is not a step in creating operating department income statements?

• A)Prepare the departmental income statements.
• B)Accumulate revenues and direct expenses by department.
• C)Allocate indirect expenses across departments.
• D)Allocate service department expenses to operating departments.
• E)Eliminate the uncontrollable costs for each department.

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Definitions:

Pay

Compensation received by an employee for their work or services.

Motivator

An internal or external factor that provides the incentive or reason for someone to act or behave in a certain manner.

Performance

The act of carrying out a task or the level of efficiency and effectiveness with which this task is completed.

Piece-rate Pay

A compensation system where workers are paid based on the quantity of items produced or tasks completed.