A departmental income statement showing gross profit can help management identify problems with both the sales prices and purchase prices of its products
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Which of the following is a source document for purchase of materials?
A) Vendor's invoice B) Purchase request C) Receiving report D) All of these
A company that uses the percent of sales to account for its bad debts had credit sales of $740,000 in Year 1, including a $720 sale to Marshall Fresh. On December 31, Year 1, the company estimated its bad debts at 1.5% of its credit sales. On June 1, Year 2, the company wrote off, as uncollectible, the $720 account of Marshall Fresh. On December 21, Year 2, Marshall Fresh unexpectedly paid his account in full. Prepare the necessary journal entries: (a) On December 31, Year 1, to reflect the estimate of bad debts expense. (b) On June 1, Year 2, to write off the bad debt. (c) On December 21, Year 2, to record the unexpected collection.
What will be an ideal response?
Which of the following calculations can be used to measure a company's degree of operating leverage?
A. Sales ÷ contribution margin. B. Sales ÷ fixed costs. C. Contribution margin ÷ sales. D. Contribution margin ÷ income. E. Sales ÷ income.
What is systems development? How is it different from program development?
What will be an ideal response?