The Adjusting Entry for Gym Memberships Earned That Were Previously

question 45

Multiple Choice

The adjusting entry for gym memberships earned that were previously recorded in the unearned gym memberships account is

• A) debit Unearned Gym Memberships; credit Gym Memberships Revenue
• B) debit Gym Memberships Revenue; credit Unearned Gym Memberships
• C) debit Unearned Gym Memberships; credit Prepaid Gym Memberships
• D) debit Gym Memberships Expense; credit Unearned Gym Memberships

Understand the impact of technology on service processes and the customer experience.

Understand the concept of the time value of money and its application in investment decision-making.

Learn to calculate and interpret the net present value (NPV) of an investment.

Understand and apply the profitability index (PI) in investment evaluation.

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Definitions:

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product cost calculation, excluding fixed overhead.

Unit Product Cost

The total cost associated with producing one unit of a product, including materials, labor, and overhead.

Direct Labor Cost

The total cost incurred by a company for the wages of workers who are directly involved in the manufacturing or production process.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overheads - in the cost of a product.