To Cancel the Interest on an Overdue Invoice Amount After

question 29

Multiple Choice

To cancel the interest on an overdue invoice amount after creating a sales invoice for it, you should -

• A) open the adjust an invoice screen, click the Delete key and then choose the invoice for the interest charge
• B) create a new invoice for a negative amount to offset the interest amount
• C) reverse the invoice you created for the interest charge
• D) either a or c above

---

Definitions:

Activity Cost Pools

Groups of related costs that are allocated to specific activities using cost drivers in activity-based costing systems.

Product X

A placeholder name commonly used to refer to a generic or unspecified product in discussions or examples.

Activity-based Costing

An approach to assigning an organization's overhead costs to specific products or services based on the activities undertaken to produce those products or services.

Direct Labour-hours

Direct labor-hours are the total hours spent by workers who directly contribute to the manufacture of a product, a direct measure of labor input.