Order-Getting Activities Are Divided into Two Categories

question 147

Multiple Choice

Order-getting activities are divided into two categories:

• A)missionary sales and technical sales.
• B)current-customer sales and new-business sales.
• C)order takers and trade sales.
• D)current sales and support sales.
• E)inside order sales and field order sales.

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Definitions:

FIFO

First-In, First-Out, an inventory valuation method where the first items placed in inventory are the first sold.

LIFO

An inventory valuation approach called Last In, First Out dictates that the newest items in inventory are the first to be accounted for as sold or used.

Cost of Goods Sold

Cost of Goods Sold represents the direct costs attributable to the production of the goods sold by a company, including material, labor, and overhead costs.

Lower-of-Cost

An accounting principle that states inventory is to be recorded at the purchase cost or the market value, whichever is lower.