Although determining gross profit for departments in a department store has some merit, the idea of trying

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‘Although determining gross profit for departments in a department store has some merit, the idea of trying to determine departmental profit is questionable because of all the indirect costs usually involved. Allocation of these costs is so arbitrary that the allocation process makes the departmental statement of financial performance virtually useless.’ Discuss.

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Accounting

ISBN: 9780730382737

11th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie

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