The Purchase Order and the Purchase Invoice That Fills the Order

question 6

Multiple Choice

The purchase order and the purchase invoice that fills the order differ as to -

• A) the shipping date
• B) the amount of the purchase order/invoice
• C) the amount of the GST paid
• D) the address of the supplier

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Definitions:

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as leases and insurance premiums.

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, contributing towards covering fixed costs and generating profit.

Return On Investment (ROI)

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Net Operating Income

The total profit of a business after operating expenses are deducted but before taxes and interest are calculated.