Match the Term to the Appropriate Definition

question 70

Multiple Choice

Match the term to the appropriate definition.There are more definitions than terms.
-Purchase Returns and Allowances

• A)Presents important subtotals,such as gross profit,to help distinguish core operating results from other,less significant items that affect net income.
• B)A reduction in the cost of inventory purchases associated with unsatisfactory goods.
• C)Refunds and price reductions given to customers after goods have been sold and found unsatisfactory.
• D)A ratio indicating the percentage of profit earned on each dollar of sales,after considering the cost of products sold.
• E)Net sales minus cost of goods sold.It is a subtotal,not an account.
• F)A sales price reduction given to customers for prompt payment of their account balance.
• G)The sum of beginning inventory and purchases for the period.
• H)A cash discount received for prompt payment of a purchase on account.
• I)Assets acquired for resale to customers.
• J)The cost of inventory lost to theft,fraud,and error.

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Definitions:

Activity-based Costing

A costing method that allocates overhead and indirect costs to specific activities, providing a more accurate representation of the costs associated with producing a product.

Activity-based Costing

An accounting method where overhead and indirect costs are allocated to the corresponding products and services based on the required activities.

Floral Bouquets

Arrangements of flowers, typically designed and prepared by florists, that are sold for various occasions such as weddings, celebrations, or as gifts.

Plantwide Overhead Rate

A single rate used to allocate all of a plant's manufacturing overhead costs to its products or cost objects, regardless of the department in which the costs were incurred.