Match the Terms with the Definitions

question 45

Multiple Choice

Match the terms with the definitions.
-Operating expenses that are incurred for the sole benefit of and are traceable to a specific department.

• A)departmental direct operating margin
• B)departmental gross profit
• C)departmental operating expense summary
• D)departmental operating income
• E)direct expenses
• F)indirect expenses

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Definitions:

Net Realizable Value

The estimated selling price in the ordinary course of business minus any costs necessary to make the sale.

Major Inventory

Major Inventory refers to the significant stock of goods a company holds for the purpose of sale or production in its normal business operations.

Valuation

The process of determining the current worth of an asset or a company, based on metrics such as earnings, sales, assets, and more.

Unit Cost

The cost incurred to produce, store, and sell one unit of a product or service.