A Company Has Four Departments (A,B,C and D)and the Net

question 108

Multiple Choice

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

• A)A
• B)B
• C)C
• D)D

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Definitions:

Moody's "Aaa"

The highest credit rating given by Moody's Investors Service, denoting the lowest risk of default for bonds and other fixed-income securities.

Default Rate

The percentage of borrowers who fail to remain current on their loans or credit agreements, indicating the level of credit risk associated with a loan portfolio.

Operating Activities

Business activities directly related to the production and delivery of goods and services, forming the primary revenue-producing activities of an entity.

Operating Cash Shortfalls

Situations where a business does not generate enough cash from its operating activities to meet its operational expenses.