Many Companies Assign Only the Net Invoice Price for Merchandise

question 94

Multiple Choice

Many companies assign only the net invoice price for merchandise to inventory and cost of goods sold.All other costs, including transportation and other costs of bringing merchandise to the place of business, are charged to expense of the period in which they are incurred.Which accounting principle or concept is applied in this example?

• A) Historical cost
• B) Conservatism
• C) Matching
• D) Cost/Benefit

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Definitions:

Psychodynamic Theorists

Scholars and clinicians who focus on unconscious psychological processes and believe that childhood experiences are crucial in shaping adult personality.

Primary Gain

The internal psychological benefits derived from the symptoms of an illness, often serving to relieve anxiety or conflict.

Secondary Gain

In psychodynamic theory, the gain people achieve when their somatic symptoms elicit kindness from others or provide an excuse for avoiding unpleasant activities.

Hysterical Somatoform Disorders

Psychological disorders characterized by physical symptoms that have no identifiable physical cause, often arising from emotional or psychological stress.