Examlex
Identify the letter of the choice that best matches the phrase or definition.
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Direct Method
A financial accounting method that allocates service department costs directly to production departments without considering services rendered between service departments.
Net Income
The final earnings of a corporation, calculated by subtracting all operating costs and tax liabilities from its total sales revenue.
Accounts Receivable
Balances owed to a company by its customers for goods or services provided on credit.
Direct Method
A costing method primarily used in cost accounting that allocates service department costs directly to production departments without any intermediate allocations.
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