Match the terms with the definitions.
-The difference between a department's net sales and cost of goods sold.

Question

Quizplus · Accepted Answer

Departmental gross profit is the difference between a department's net sales and cost of goods sold.

Answer: A 
 Departmental direct operating margin is the difference between a department's net sales and direct expenses.

Answer: C 
 Departmental operating expense summary is a report that details the operating expenses for a specific department.

Answer: D 
 Departmental operating income is the amount of profit or loss a department has generated after all expenses have been deducted from gross profit.

Answer: E 
 Direct expenses are costs that can be traced directly back to a specific department or product.

Answer: F 
 Indirect expenses are costs that cannot be traced back to a specific department or product and are typically allocated to departments based on some predetermined formula or allocation method.

Match the Terms with the Definitions