Match Each Phrase That Follows with the Term (A-E) It

question 134

Short Answer

Match each phrase that follows with the term (a-e) it describes. Some terms may not be used and other terms may be used more than once.
-Includes manufacturing costs plus selling and administrative expenses in the total cost per unit before markup
A)Total cost method
B)Variable cost method
C)Normal selling price
D)Product cost method
E)Yield pricing

• A)Total cost method
• B)Variable cost method
• C)Normal selling price
• D)Product cost method
• E)Yield pricing

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Definitions:

Inventory Items

Goods or materials that a business holds for the purpose of sale or production in the normal course of operation.

Estimating Value of Inventory

The process of calculating the worth of unsold goods at the end of an accounting period using methods such as FIFO or LIFO.

Gross Profit Method

An inventory estimation technique that calculates the cost of goods sold by deducting sales revenue from the gross profit percentage.

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal, used to assess the value of inventory or receivables.