Departmental Income Statements Provide Management with Information Necessary for Decision-Making

question 94

Multiple Choice

Departmental income statements provide management with information necessary for decision-making.Which of the following is NOT a decision made possible by these statements?

• A) where improvements in the profitable departments are needed
• B) which departments to expand
• C) whether or not to eliminate a department
• D) what base to use to allocate costs

---

Definitions:

Extreme Scores

Values or data points in a set that are significantly higher or lower than the majority, often influencing the overall analysis or interpretation of the data.

Measure of Central Tendency

A statistical measure that describes the center of a data set; common examples include the mean, median, and mode.

Median

A statistical measure that represents the middle value in a given set of numbers when arranged in order.

Median

A statistical measure representing the middle value in a given set of numbers, arranging them in ascending or descending order.