Which of the Following Would Generally Not Be a Cause

question 33

Multiple Choice

Which of the following would generally not be a cause to adjust standard cost rates in a service industry?

• A)wage rate increase for the cleaners
• B)electricity charges from the municipality
• C)salary increases for management
• D)cleaning supplies increases from suppliers

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Definitions:

Sales Return

goods returned by the customers to the seller after the sale, reducing the gross sales figure.

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Net Sales

The revenue a company earns from sales after subtracting returns, allowances for damaged or missing products, and discounts.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that is expected to be uncollectible.