Which of the following expenses incurred by a department store is an a. 18. indirect expense? Insurance on merchandise inventory b. Sales salaries Depreciation on store equipment d. c. Salary of vice-president of finance 19. In a profit center, the manager has responsibility and authority for making decisions that affect: a. Liabilities b. Assets C. investments d. Costs Operating expenses directly traceable to or incurred for the sole benefit of a specific department and usually subject to the control of the department manager are termed: a. miscellaneous administrative expenses b. direct expenses c. indirect expenses d. fixed expenses 20. 21. In evaluating the profit center manager, the income from operations should be compared: a. across profit centers b. to historical performance or budget c. to the competitor's net income d. to the total company earnings per share Income from operations of the Commercial Aviation Division is $2,225,000. If income from operations before service department charges is $3,250,000: a. operating expenses are $1,025,000 b. total service department charges are $1,025,000 c. noncontrollable charges are $1,025,000 d. direct manufacturing charges are $1,025,000 22. 23. 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 margirn