In a Department Store, the Men's Clothing Section Would Be

question 63

Multiple Choice

In a department store, the men's clothing section would be a(n) :

• A) profit center.
• B) direct expense.
• C) cost center.
• D) indirect expense.

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Definitions:

Level Of Activity

A measure of the amount of output or work performed, often used in accounting to allocate fixed costs or in operational planning.

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the profitability of a company's core business activities.

Operating Expenses

Operating expenses are the costs associated with the day-to-day operations of a business, excluding the cost of goods sold, such as rent, utilities, and payroll.