The Terms 2/10 N/30 State That a 2% Discount Is

question 180

True/False

The terms 2/10 n/30 state that a 2% discount is available if the invoice is paid within the first 10 days of the next month.

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Definitions:

Excess Capacity

The amount by which the actual production of a company exceeds its planned production capacity.

Variable Production Costs

Expenses that change in direct proportion to the level of production output.

Cost-Volume-Profit Analysis

An accounting method used to determine how changes in costs and volume affect a company's operating income and net income.

Contribution Format

An income statement format that separates fixed and variable costs, showing the contribution margin which covers fixed costs and profits.