To Calculate Operating Income, Total Service Department Charges Are

question 86

Multiple Choice

To calculate operating income, total service department charges are:

• A) subtracted from operating income before service department charges.
• B) subtracted from operating expenses.
• C) added to operating income before service department charges.
• D) subtracted from gross profit margin.

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Definitions:

Secondary Sector

Jobs that transform raw materials into consumer goods (e.g., cars, furniture).

Midcentury

A term generally used to specify the middle period of the 20th century, characterized by distinctive trends in design, culture, and politics.

Tertiary Sector

Jobs that provide services (e.g., teaching, nursing) rather than goods.

Nineteenth Century

The period from 1801 to 1900, marked by significant industrial, social, and political changes worldwide.