A Benefit Obtained from Using Industry Averages Is That It

question 136

Multiple Choice

A benefit obtained from using industry averages is that it provides a(n)

• A) benchmark to compare the company's results.
• B) indication where errors exist in the statements.
• C) benchmark to be used in evaluating a client's budgets.
• D) comparison of "what is" with "what should be."

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Definitions:

Purchase Price

The amount of money paid to buy goods or services.

Shipping Cost

Expenses associated with the transportation of goods from one place to another.

Net Sales

Total sales revenue minus returns, allowances for damaged or missing goods, and discounts.

Sales Discounts

Sales discounts are reductions in the price of a product or service offered by a seller to a buyer, usually to encourage prompt payment or bulk purchases.