The amount by which a department's sales exceed its direct expenses is:
A)Net sales.
B)Gross profit.
C)Departmental profit.
D)Contribution margin.
E)Departmental contribution to overhead.

Question

Quizplus · Accepted Answer

The departmental contribution to overhead is the amount by which a department's sales exceed its direct expenses, contributing to covering the fixed costs and overhead of the business.

The Amount by Which a Department's Sales Exceed Its Direct