The first three steps in preparing a departmental income statement are: (1)accumulate ________ of the department,(2)allocate ________ to the department,and (3)allocate ________ to the operating departments.

Operating Departments

These are divisions within a business that are directly involved in carrying out the operations central to the business's purpose.

Indirect Expenses

Costs that are not directly attributable to the production of goods or services, such as administrative and selling expenses.