Department XYZ Had Sales of $90,000,direct Expenses of $60,000 and Indirect

question 7

Multiple Choice

Department XYZ had sales of $90,000,direct expenses of $60,000 and indirect expenses of $50,000.The indirect expenses allocated to this department would have been incurred whether or not the department existed.If this department had been eliminated,the company's reported net income would have been

• A) $20,000 higher.
• B) $30,000 higher.
• C) $20,000 lower.
• D) $30,000 lower.

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Definitions:

Nasopharynx

The upper part of the throat located behind the nose, connecting the nasal cavity to the throat and playing a role in respiration and vocalization.

Epiglottis

A flap of cartilage located at the root of the tongue, which is depressed during swallowing to cover the opening of the windpipe.

Thyroid Cartilage

The largest cartilage of the larynx, forming the Adam's apple, which protects the vocal cords.

Cricoid Cartilage

A ring-like structure located at the top of the trachea below the thyroid cartilage, providing support and structure to the airway.