As Inventory Draws Down, Management Must Know at What Stock

question 30

True/False

As inventory draws down, management must know at what stock level to place a new order. This stock level is called the order point.

Recognize the constitutional limitations on both state and federal powers.

Identify the roles and powers of the branches of government in the American system.

Understand the importance and application of the Necessary and Proper clause and the Spending power.

Grasp the principles of commerce regulation and the impact of interstate commerce on legislation.

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Definitions:

Sales

The total revenue earned from the selling of goods or services, before any deductions are made.

Charge Customer

To bill a customer for goods or services provided, thereby creating an account receivable.

Cash Discount

A deduction from the invoice price that is allowed if payment is made within a specified period.

Credit

An accounting entry recording an increase in liabilities or equity or a decrease in assets, opposite of a debit.