Division R Reported Operating Income of $800,000 and Total Service

question 96

Multiple Choice

Division R reported operating income of $800,000 and total service department charges of $275,000.Therefore its:

• A) net income was $1,075,000.
• B) gross profit margin was $525,000.
• C) operating income before service department charges was $1,075,000.
• D) consolidated non operating income was $420,000.

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Definitions:

Semantic Symbols

Signs or objects that represent something else based on convention, association, or resemblance with shared meaning within a cultural or social group.

Primacy Effect

The tendency to remember information at the beginning of a list better than the information that follows.

Recency Effect

The tendency to recall the last items in a sequence more readily than those in the middle.

Sensory Decay

The decline in the ability of a sensory system to detect or accurately interpret information over time or due to external factors.