To compute operating income, total support department allocations are
A)added to operating income before support department allocations
B)subtracted from operating expenses
C)subtracted from operating income before support department allocations
D)subtracted from gross profit

Question

Quizplus · Accepted Answer

Operating income is calculated by subtracting total support department allocations from the operating income before these allocations. This reflects the impact of support department costs on the operational profitability of the business.

To Compute Operating Income, Total Support Department Allocations Are