Match Each of the Following Items with the Appropriate Description

question 121

Multiple Choice

Match each of the following items with the appropriate description in applying the P.L. 86-272 definition of solicitation.
-Training administrative personnel to use an update to ordering software.

• A)More than solicitation, creates nexus
• B)Solicitation only, no nexus created

---

Definitions:

Total Cost Method

An accounting method that involves recording all production costs to inventory until the goods are sold, at which point they are expensed.

Markup

The amount added to the cost of a product to determine its selling price, usually expressed as a percentage of the cost.

Differential Analysis

The process of comparing the costs and benefits of alternative business decisions.

Processing Cost

The expenses incurred in the course of transforming raw materials into finished products.