The Field of Management That Specializes in Production of Goods

question 120

True/False

The field of management that specializes in production of goods and services and uses special tools and techniques for solving production problems is called operations management.

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Definitions:

Purchases Returns and Allowances

Purchases Returns and Allowances is an account that tracks the reduction in costs due to returned goods or provided allowances after the purchase has been made.

Purchases Discounts

Discounts taken by the buyer for early payment of an invoice.

Balance Sheet

A financial statement that presents a company’s assets, liabilities, and shareholders' equity at a specific point in time.

Periodic Inventory System

A periodic inventory system is an accounting method where inventory levels and the cost of goods sold are updated in the financial records at the end of an accounting period, not continuously.