To calculate income from operations,total service department charges are:
A)subtracted from income from operations before service department charges.
B)subtracted from operating expenses.
C)added to income from operations before service department charges.
D)subtracted from gross profit margin.

Question

Quizplus · Accepted Answer

To calculate income from operations, service department charges should be subtracted from income from operations before service department charges. This gives a more accurate picture of the profitability of the core business operations without including the costs of support functions such as service departments.

To Calculate Income from Operations,total Service Department Charges Are