Departmental contribution to overhead is calculated as the amount of sales of the department less:
A) Joint costs.
B) Direct expenses.
C) Controllable costs.
D) Direct and indirect costs.
E) Product and period costs.

Question

Quizplus · Accepted Answer

Departmental contribution to overhead is calculated after deducting direct expenses, which are costs that are exclusively incurred by the department and can be directly attributed to the production of goods or services. Joint costs, controllable costs, direct and indirect costs, and product and period costs are not necessary to calculate departmental contribution to overhead.

Departmental Contribution to Overhead Is Calculated as the Amount of Sales