Use the Following Information for Questions Oskar Corp

question 141

Multiple Choice

Use the following information for questions Oskar Corp.reports operating expenses in two categories: (1) selling and (2) general and administrative.The adjusted trial balance at December 31, 2014, included the following expense accounts: One-half of the rented premises is occupied by the sales department.
-The following items were among those reported on Ernie Ltd.'s income statement for the year ended December 31, 2014: The office space is used equally by Ernie's sales and accounting departments.What amount should be classified as general and administrative expenses in Ernie's multiple-step income statement for 2014?

• A)$117,500
• B)$217,500
• C)$335,000
• D)$465,500

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Definitions:

Supply Chain

The complete system of producing and delivering a product or service, from the very beginning stage of sourcing the raw materials to the final delivery to the consumer.

Supply Chains

The entire network of entities, directly or indirectly, involved in the sourcing, production, and distribution of goods or services from suppliers to consumers.

Supply Chain Function

The activities and operations undertaken by entities within a supply chain, from procurement of raw materials to delivery of finished goods.

Shipping Company

A business that provides services for transporting goods by sea, air, or land, from one location to another.