If a Unit of Work Has One or More Nonconformances,we

question 14

Multiple Choice

If a unit of work has one or more nonconformances,we term the entire unit _____.

• A)dysfunctional
• B)out of variance
• C)nonconforming
• D)static

---

Definitions:

Sales Discounts

Sales discounts are reductions in price offered to customers as an incentive for early payment or to encourage sales.

Net Sales

The total sales income of a company after removing costs associated with returns, allowances for damaged or lost items, and price reductions.

Multiple-Step Income Statement

A detailed financial statement that separates operating revenue and expenses from non-operating items, displaying multiple layers of income and expense.

Net Sales

The revenue from sales after deducting returns, allowances for damaged or missing goods, and discounts.