The Correct Cutoff and Valuation of Accrued Salaries and Wages

question 3

Multiple Choice

The correct cutoff and valuation of accrued salaries and wages

• A)is to calculate the exact hours of pay that were earned in the current period and paid in a subsequent period.
• B)is to compute an approximate proportion of the wages that were earned in the current period and use that amount as the accrual.
• C)allows the client to choose between A and B (above)each year.
• D)depends on company policy and whether it is consistently followed.

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Definitions:

Intensive Distribution

A strategy where a company sells its products in as many outlets as possible to maximize coverage and sales.

Personal Pen

A writing instrument chosen or designed to meet an individual's specific preferences or needs, often considered personal property.

Exclusive Distribution

A market strategy where a manufacturer restricts the sale of their product to a single distributor or a limited number of sellers.

Supply Chain

The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and finally to the consumer.