Match the Terms with the Descriptions Related to Merchandise Sales

question 34

Multiple Choice

Match the terms with the descriptions related to merchandise sales and purchases.
-The seller is responsible for the cost of delivering the merchandise to the buyer.

• A)Transportation-in
• B)Perpetual inventory system
• C)Net purchasesd.
• D)FOB Destination
• E)Cost of goods available for sale
• F)Periodic inventory system
• G)FOB Shipping point
• H)Delivery expense

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Definitions:

Profit Margin

This financial ratio measures the amount of net income earned with each dollar of sales by comparing net income to net sales.

Full-capacity Sales

The maximum sales level a company can achieve with its current operational assets without additional investment.

Fixed Assets

Long-term tangible assets, such as buildings, machinery, and equipment, purchased for operational use and not expected to be converted into cash in the short term.

Production Level

The quantity of goods or services that a company produces within a given period, often directly affecting revenues and profitability.