Credit Refusals Cannot Serve as Order Acknowledgments When Requests for Credit

question 21

True/False

Credit refusals cannot serve as order acknowledgments when requests for credit are accompanied with an order.

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Definitions:

Raw Materials

are the basic, unprocessed inputs used in the manufacture of goods and products.

Indirect Materials

These are materials used in the production process that are not directly traceable to the finished product.

Production

The process of creating goods and services through the combination of labor, materials, and technology.

Direct Materials Cost

The cost of raw materials that can be directly traced to the production of goods, considered a variable cost in manufacturing.