When a Customer Purchases Goods or Services but Does Not

question 23

Multiple Choice

When a customer purchases goods or services but does not pay at the point of sale,what do you record?

• A)An invoice
• B)A purchase order
• C)A reminder
• D)None of the choices are correct

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and considered a part of the product's cost.

Direct Labour Hours

This term describes the actual hours worked by employees who are directly involved in the manufacturing process.

Strategic Objectives

Long-term goals that an organization aims to achieve to implement its strategy and fulfill its mission.

Discretionary Fixed Costs

Those fixed costs that arise from annual decisions by management to spend on certain fixed cost items, such as advertising and research.