The difference between a department's gross profit and its operating expenses is known as the
a. departmental gross profit.
b. departmental operating income.
c. departmental operating expenses.
d. departmental direct operating margin.
b
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Under the accrual basis of accounting, adjustments are often made for prepaid expenses and unearned revenues.
Answer the following statement true (T) or false (F)
To compute the break-even point in units, which of the following formulas is used?
a. FC/CM per unit b. FC/CM ratio c. CM/CM ratio d. (FC+VC)/CM ratio
__________ is the power to control prices or exclude competition in a relevant market
a. Horizontal price-fixing b. Vertical market division c. A tying arrangement d. Market power
Operating profit is ________
A) gross profit minus operating expenses B) sales revenue minus cost of goods sold C) earnings before depreciation and taxes D) sales revenue minus depreciation expense