To calculate income from operations, total service department charges are
A) added to income from operations before service department charges
B) subtracted from operating expenses
C) subtracted from income from operations before service department charges
D) subtracted from gross profit margin

Question

Quizplus · Accepted Answer

Total service department charges are expenses that should be deducted from income from operations before service department charges to get the accurate figure for income from operations. Adding them or subtracting them from other figures would not result in the correct calculation of income from operations.

To Calculate Income from Operations, Total Service Department Charges Are