When Preparing an Income Statement Showing Departmental Contribution Margin

question 94

Multiple Choice

When preparing an income statement showing departmental contribution margin:

• A) indirect expenses are combined with direct expenses.
• B) indirect departmental expenses are added to contribution margin.
• C) direct expenses are subtracted from gross profit of a department.
• D) None of these answers is correct.

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Definitions:

OD Strategy

Organizational Development Strategy involves a planned, organization-wide effort to increase an organization's effectiveness and viability.

Reengineering

The radical redesign of business processes to achieve dramatic improvements in productivity, cycle times, and quality, often involving the use of technology.

Pulse Survey

A quick, frequent survey designed to capture the immediate sentiments or feedback of a group, often used in the context of employee engagement.

Ford Motor Company

An American multinational automaker founded by Henry Ford, known for revolutionizing vehicle manufacturing through the use of assembly lines.