What Is the Total Amount of the Costs Listed Above

question 188

Multiple Choice

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

• A)$83,000
• B)$94,000
• C)$90,000
• D)$127,000

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Definitions:

Catalog Price

The listed price of goods or services in a supplier's catalog, not including any discounts or promotions.

Credit Terms

The conditions under which credit will be extended to a customer, including the repayment period and any discounts for early payment.

Multiple-Step Income Statement

An income statement that shows multiple steps in determining net income, including gross profit, operating income, and other incomes and expenses.

Selling Expenses

Costs associated with the selling of a company's goods or services, not including the cost of producing the goods.