A Deduction from the Price of an Item Is Called

question 23

Multiple Choice

A deduction from the price of an item is called a

• A) discount.
• B) variable reduction.
• C) trade-in.
• D) line.
• E) concession remittance.

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Definitions:

Period Costs

Costs that are expensed in the period they are incurred and are not directly tied to the production of goods or services, such as administrative expenses.

Operating Costs

Expenses related to the day-to-day functioning of a business, excluding costs directly associated with the production of goods or services.

Direct Costs

Costs that can be traced directly to a cost object.

Cost Object

Anything for which a separate measurement of cost is desired, including products, services, projects, or customers.