The Amount by Which a Department's Sales Exceed Its Direct

question 125

Multiple Choice

The amount by which a department's sales exceed its direct expenses is:

• A)Net sales.
• B)Gross profit.
• C)Departmental profit.
• D)Contribution margin.
• E)Departmental contribution to overhead.

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Definitions:

Accurate To The Cent

Describes a level of precision in financial calculations or measurements that are exact to the smallest denomination of currency, such as a cent in the U.S. dollar.

Periodic Interest Rate

The rate of interest charged on a loan or earned by an investment for a duration that is less than one year.

Annuity

An economic scheme that delivers a constant payment stream to a recipient, predominantly utilized in preparing for retirement.

Payment Interval

The frequency with which a recurring payment is made, such as monthly or annually.