Questions from College Accounting

Q: Explain the components of cost of goods sold.

Explain the components of cost of goods sold.

Q: What is the difference between a cost center and a profit center

What is the difference between a cost center and a profit center?

Q: Explain how gross profit is calculated.

Explain how gross profit is calculated.

Q: Special journals are not used in departmental accounting. Agree or disagree

Special journals are not used in departmental accounting. Agree or disagree? Please explain.

Q: Compare and contrast indirect expenses and direct expenses.

Compare and contrast indirect expenses and direct expenses.

Q: Explain how advertising expense could be both a direct cost and an

Explain how advertising expense could be both a direct cost and an indirect cost for a company.

Q: To assist you in recording these transactions for the month of January

To assist you in recording these transactions for the month of January, at the end of this problem is the schedule of accounts receivable as of December 31 and an updated chart of accounts with the cu...

Q: Square footage is often used to allocate indirect costs to various departments

Square footage is often used to allocate indirect costs to various departments within a company. Agree or disagree?

Q: An income statement showing departmental income before tax does not list individual

An income statement showing departmental income before tax does not list individual operating expenses for each department. Agree or disagree? Please explain.

Q: Explain why a company might prepare an income statement showing each department’s

Explain why a company might prepare an income statement showing each department’s contribution margin.