Which of the following is not included in the calculation of departmental gross profit?
A) Selling price.
B) Cost of sales.
C) Number of units sold.
D) Selling and distribution expenses.

Question

Quizplus · Accepted Answer

Departmental gross profit is calculated by subtracting the cost of sales from the selling price of the products or services sold within the department. The number of units sold is also a key factor in determining the gross profit margin. However, selling and distribution expenses are not included in the calculation of departmental gross profit. These expenses are accounted for separately in the income statement.

Which of the Following Is Not Included in the Calculation