Describe the Types of Entries Required in Later Periods That

question 162

Essay

Describe the types of entries required in later periods that result from accruals.

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Definitions:

Relevant

Pertaining to information or data that is directly related and significant to the decision-making process.

Contribution Margin

the difference between the sales revenue of a product and its variable costs; used to cover fixed costs and generate profit.

Variable Costs

Expenses that change in proportion to the amount of goods produced or sold, like labor and material costs.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much revenue is available to cover fixed costs and generate profit.