Which of the following is not a step in creating operating department income statements?
A) Allocate indirect expenses across departments.
B) Allocate service department expenses to operating departments.
C) Prepare the departmental income statements.
D) Accumulate revenues and direct expenses by department.
E) Eliminate the uncontrollable costs for each department.

Question

Quizplus · Accepted Answer

Eliminating uncontrollable costs is not a step in creating operating department income statements. The other four options - allocating indirect expenses across departments, allocating service department expenses to operating departments, preparing departmental income statements, and accumulating revenues and direct expenses by department - are all key steps in creating operating department income statements.

Which of the Following Is Not a Step in Creating