Match the Following Terms with Their Definitions

question 107

Multiple Choice

Match the following terms with their definitions.
-ROG

• A)Criteria on invoice
• B)Seller pays cost of freight
• C)Could be calculated by table look-up
• D)Savings from early payment
• E)Cash discount within first 10 days in next month after sale
• F)Amount of time to take advantage of a cash discount
• G)Discount period begins when goods are received
• H)100% less stated percent
• I)List price minus amount of trade discount
• J)Time period sellers give buyers to pay invoices
• K)1 - net price equivalent rate
• L)Buyer pays cost of freight
• M)Actual cost to buyer per dollar
• N)2/10, n/30
• O)Two or more trade discounts
• P)List price minus net price
• Q)Suggested retail price

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Definitions:

Equivalent Units

A concept in process costing that converts partially completed units into a number of fully completed units for accounting purposes.

Physical Units

A measure used in cost accounting to quantify units of production or inventory in a tangible, countable form.

Percentage of Completion

An accounting method used to recognize revenues and expenses of long-term projects proportionally to the work completed.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, treating them as an equivalent number of fully completed units.