Match the Term to the Appropriate Definition

question 80

Multiple Choice

Match the term to the appropriate definition.There are more definitions than terms.
-FOB Destination

• A)The sum of beginning inventory and purchases for the period.
• B)Presents important subtotals,such as gross profit,to help distinguish core operating results from other,less significant items that affect net income.
• C)A term of sale indicating that goods are owned by the seller until they are delivered to the buyer.
• D)Sells goods that have been obtained from a supplier.
• E)Inventory records are updated every time inventory is bought,sold,or returned.
• F)A sales price reduction given to customers for prompt payment of their account balance.
• G)Inventory records are updated at the end of the accounting period.To determine how much merchandise has been sold,inventory must be physically counted at the end of the period.
• H)A term of sale indicating that goods are owned by the buyer the moment they leave the seller's premises.
• I)Sells services rather than physical goods.
• J)Assets acquired for resale to customers.

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Definitions:

Curvilinear Cost

A cost behavior pattern where costs increase with activity, but not at a constant rate, often depicted as a curved line on a graph.

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a company.