Which of the Following Is Not a Step in Creating

question 94

Multiple Choice

Which of the following is not a step in creating operating department income statements?

• A)Prepare the departmental income statements.
• B)Accumulate revenues and direct expenses by department.
• C)Allocate indirect expenses across departments.
• D)Allocate service department expenses to operating departments.
• E)Eliminate the uncontrollable costs for each department.

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Definitions:

Absolute Advantage

The ability of an individual, firm, or country to produce more of a good or service than competitors, using the same amount of resources.

Hamburgers

A type of food consisting of a cooked patty of ground meat, typically beef, placed inside a sliced bread roll or bun.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than others.

Opportunity Cost

The value of the best alternative foregone as a result of making a decision, a fundamental concept in economics that emphasizes the cost of trade-offs.