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According to the research on the recognition-by-components theory,
Net Purchases
The total cost of purchases in a period minus purchase returns, allowances, and discounts.
Cost Of Goods Sold
Direct costs attributable to the production of the goods sold by a company, including material and labor expenses.
Weighted Average
A calculation method that takes into account the varying degrees of importance of the numbers in a data set, resulting in a figure that represents the overall effect.
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