Simple Simon's Balance Sheet and Income Statement Accounts Follow

question 98

Multiple Choice

Simple Simon's balance sheet and income statement accounts follow:

What is Simple Simon's gross margin ratio for 2010?

• A) 65%
• B) 35%
• C) 67%
• D) 33%
• E) 39%

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Definitions:

Support Department Allocations

The process of distributing the costs of support departments (e.g., human resources, maintenance) to producing departments based on their usage of services.

Operating Income Before

Income generated from normal business operations before deductions such as taxes and interest.

Responsibility Accounting Reports

Financial reporting tools designed to track revenue and expenses associated with specific departments or operations, highlighting the financial performance and accountability of departmental managers.

Profit Centers

Designated segments within a company for which the managers are responsible for both revenues and expenses, effectively measuring each segment's profitability.