Although determining gross profit for departments in a department store has some merit, the idea of trying
Question:
‘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 income statement virtually useless.’ Discuss.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
Determining gross profit for departments is based on being able to identify costs and expenses which ...View the full answer
Answered By
Pushpinder Singh
Currently, I am PhD scholar with Indian Statistical problem, working in applied statistics and real life data problems. I have done several projects in Statistics especially Time Series data analysis, Regression Techniques.
I am Master in Statistics from Indian Institute of Technology, Kanpur.
I have been teaching students for various University entrance exams and passing grades in Graduation and Post-Graduation.I have expertise in solving problems in Statistics for more than 2 years now.I am a subject expert in Statistics with Assignmentpedia.com.
4.40+
3+ Reviews
10+ Question Solved
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
Question Posted:
Students also viewed these Business questions
-
A department store has offered you a credit card that charges interest at 1.15% per month, compounded monthly. What is the nominal interest (annual percentage) rate for this credit card? What is the...
-
Woodhaven Service is a small, independent gas station located in the Woodhaven section of Queens. The station has three gasoline pumps and two service bays. The repair facility specializes in...
-
The fine jewellery department in a department store has the same GMROI as the small appliances department even though characteristics of the merchandise are quite different. Explain this situation.
-
Let be an arbitrary operation in Problems 5259. Describe the operation for each problem. 503 = 2; 702= 5; 901 = 8; 8 0 2 = 6;
-
There are four esters with molecular formula C4H8O2.How could they be distinguished by 1H NMR?
-
Determine whether the statement is true or false. If it is false, explain why or give an example that shows it is false. If the limit of f(x) as x approaches c is 0, then there must exist a number k...
-
A company is considering two alternatives, one of which must be implemented. Of the two projects, A has the higher maintenance cost, but B has the higher investment cost. The appropriate (and...
-
Kendra Companys standard labor cost of producing one unit of Product DD is 4 hours at the rate of $12.00 per hour. During August, 40,800 hours of labor are incurred at a cost of $12.10 per hour to...
-
Explore Incorporated is a new start - up specializing in renting camper vans. On January 1 , Year 1 , the company purchased a new camper van with a total cost of $ 8 8 , 4 0 0 . The company estimates...
-
Damien and Donna are equal partners in the DD Partnership. The passive activity loss and the at-risk rules are not applicable to the partners. The partnership reports the following items on its...
-
Save More is a large retail warehouse store which sells a wide range of products at discounted prices to the public. For each of the following business segments identify what type of responsibility...
-
The manager of a newly established department store asked the accountant to make recommendations regarding reports which should be produced for management use. The accountant was adamant that an...
-
Use Lewins force field analysis to describe the dynamics of organizational change at Umpqua Bank (opening vignette to this chapter).
-
Quinly and her husband, customers at Greenway Supermarkets, purchased several pounds of fi let mignon and checked out their purchases at the newly installed self-scanners. The price listed on the...
-
Ryder, a police offi cer in Philadelphia, was alone in his patrol car when he received a radio call of a man with a gun. Ryder was the fi rst offi cer to arrive and was confronted by a suspect...
-
The GDGS Corporation adopted an arbitration policy and announced it to its employees via an e-mail. The policy stated that arbitration was the exclusive means of resolving legal disputes between...
-
Dasey was employed as a state trooper by the Massachusetts Department of State Police. In his employment application, Dasey stated that he had not used illegal drugs during the previous fi ve years....
-
Netscape offered all visitors to its Web site free SmartLoad software provided the visitor clicked his or her mouse on a designated box labeled Download. A reference to a license agreement appeared...
-
The financial statements of The North West Company Inc. are presented in Appendix A at the end of the book. Instructions (a) What types of current and non-current liabilities were reported in The...
-
(a) Find the equation of the tangent line to f(x) = x 3 at the point where x = 2. (b) Graph the tangent line and the function on the same axes. If the tangent line is used to estimate values of the...
-
What is meant by liquidity? Rank the following assets from one to five in order of liquidity. (a) Goodwill. (b) Inventories. (c) Buildings. (d) Short-term investments. (e) Accounts receivable.
-
What is meant by liquidity? Rank the following assets from one to five in order of liquidity. (a) Goodwill. (b) Inventories. (c) Buildings. (d) Short-term investments. (e) Accounts receivable.
-
What is meant by liquidity? Rank the following assets from one to five in order of liquidity. (a) Goodwill. (b) Inventories. (c) Buildings. (d) Short-term investments. (e) Accounts receivable.
-
Vanguard Corporation issued $8,000,000 of 10% bonds on September 1, 2023, due on September 1, 2029. The interest is to be paid twice a year on August 31 and February 28. The bonds were sold to yield...
-
If football matches were shortened form 90 minutes to 45 minutes, would you expect more uncertainty of outcome or less? Refer to any sports economic theories.
-
The Canadian Restaurant Association states that the restaurant industry has an economic effect of more than $1.7 trillion annually, with every dollar spent in restaurants generating an estimated...
Study smarter with the SolutionInn App