If a Customer Returns Merchandise Which Has Already Been Paid

question 218

True/False

If a customer returns merchandise which has already been paid for,the retailer may give either a cash refund or a credit on account.

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Definitions:

Production Volume

The total number of units of a product or service produced over a specific period.

Sales Volume

The total number of units of product sold during a specific period.

Variable Costing

A costing method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a product.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries of permanent staff, and equipment depreciation.