Direct operating margin is:
a. the sum of departmental gross profit and direct operating expenses.
b. the difference between departmental gross profit and direct operating expenses.
c. the difference between departmental gross profit and indirect operating expenses.
d. the difference between departmental gross profit and operating expenses.
e. the difference between departmental net income and cost of goods sold.
b
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Which of the following is true about the rights of shareholders?
A. Shareholders' rights are aimed at protecting only the interests of major shareholders. B. Shareholders have the rights to be informed about their investments. C. Shareholders do not have the rights to put ceilings on the salaries of top executives. D. Shareholders have the rights to make managerial decisions within the corporation.
The presence of idle capacity in the selling division may increase
a. the incremental costs of production in the selling division. b. the market price for the good. c. the price that a buying division is willing to pay on an internal transfer. d. a negotiated transfer price.
The ________ specifies the distribution of rights and responsibilities among different participants in a corporation and spells out the rules and procedures for making decisions on corporate affairs.
A. Foreign Corrupt Practices Act B. Rainforest Action Network C. corporate governance structure D. nongovernmental organizations
Henry, a manager at Traders Inc., is confident about getting an Austrian supplier for the company. He is talking with the Austrian representatives over lunch. Which of the following should Henry avoid after the deal is made?
A. Selling the deal B. Changing the subject to a personal one C. Leaving, if the other person does not care much about relationships D. Sticking around, if the other person wants to work on the relationship