The difference between a department’s gross profit and its operating expenses is called(a) departmental gross profit.(b) departmental direct operating margin.(c) departmental operating income.(d) net income.

The difference between a department’s gross profit and its operating expenses is called(a) departmental gross profit.(b) departmental direct operating margin.(c) departmental operating income.(d) net income.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 5TF: Departmental direct operating margin is the difference between a departments gross profit and its...

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Question

The difference between a department’s gross profit and its operating expenses is called
(a) departmental gross profit.
(b) departmental direct operating margin.
(c) departmental operating income.
(d) net income.

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