Asked by eliza mason on Jul 04, 2024
Verified
Departmental contribution to overhead is the same as gross profit generated by that department.
Departmental Contribution
The amount of revenue generated by a specific department minus the direct costs associated with that department.
- Acknowledge the importance of developing income statements for both operating and service sectors within a department.
Verified Answer
MF
Marah FarahJul 09, 2024
Final Answer :
False
Explanation :
Departmental contribution to overhead is calculated by deducting direct expenses from department's revenue. Gross profit is calculated by deducting cost of goods sold from revenue. They are not the same.
Learning Objectives
- Acknowledge the importance of developing income statements for both operating and service sectors within a department.
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