Question

question 1 (3 points)
when a company tracks gross profit by department, the sales journal will:
not differ from a company that does not track gross profit by department.
have a separate column for accounts receivable for each department.
have a separate column for sales for each department.
have a column for purchases for each department.
question 2 (3 points)
departmental income statements would be a useful to tool for management to determine the viability of a department.
true
false

Explanation:

Question 1

When tracking gross profit by department, the sales journal needs to record sales per department. A separate column for sales per department allows for proper calculation of gross profit (which is sales - cost of goods sold). Accounts receivable column per department is not standard for tracking gross profit by department. Purchases column is not in the sales journal. And it does differ from a company not tracking by department as that company wouldn't have department - specific sales columns.

Departmental income statements show revenues, costs, and profits (or losses) for each department. By analyzing these, management can see if a department is generating enough income to cover its costs and contribute to the overall company. So it is a useful tool for determining department viability.

Answer:

have a separate column for sales for each department.

Question 2