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

Question

Quizplus · Accepted Answer

Departmental contribution to overhead is calculated by subtracting direct expenses from the department's revenues. Direct expenses are costs that can be directly attributed to the department.

Departmental Contribution to Overhead Is Calculated as Revenues of the Department