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Preschoolers Cal and Jacob are playing with toy trucks. Jacob says, "My mommy took me to watch the construction at the end of the street. Cal responds, "This dump truck is yellow and black. I have one like this at my house." Then Jacob says, "They were digging up the road with a backhoe. They are putting a big pipe under the road." Cal then says, "I also have a green cement truck. It can turn. I got it for my birthday." This conversation is an example of
Cost of Goods Sold
The direct expenses related to the manufacture of the goods a company sells, encompassing both costs of materials and labor.
Inventory
Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials to be consumed in the production process.
Purchases Discount
A reduction in the cost of goods or services, granted by the seller to the buyer, when the buyer pays within a specified time frame.
Sales Discount
A reduction in the price of goods or services offered to customers, typically to prompt quick payment or bulk purchases.
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