The Net Result of the Difference Between the Total Value

question 42

Multiple Choice

The net result of the difference between the total value added and the total costs incurred is the ________ of the chain.

• A)value
• B)total margin
• C)total premium
• D)profit

Understand and apply the concept of days' sales in inventory and inventory turnover ratio for inventory management.

Understand the principles of the lower of cost or net realizable value for inventory valuation.

Estimate inventory cost using gross profit method.

Recognize and understand the accounting treatment for goods on consignment.

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Definitions:

Quasi Contract

A legal concept where a court imposes a contractual obligation on a party who has not expressly consented to it, to prevent unjust enrichment.

Illusory Promise

An agreement that lacks a firm commitment or terms, making it unenforceable by law.

Accord and Satisfaction

A legal settlement where a debtor offers payment or performance different from what was originally agreed, and the creditor accepts it as full settlement of the debt.

UCC

A complete collection of legal regulations that administer all business dealings across the United States, known as the Uniform Commercial Code.