What Critical Event Must Take Place Before Goods Can Be

question 73

Multiple Choice

What critical event must take place before goods can be shipped in order to assure payment can be reasonably expected?

• A) determination of correct delivery address
• B) credit approval
• C) matching of shipping document with sales invoice
• D) receipt of sales order from the customer

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Definitions:

Output

The total amount of goods or services produced by a person, machine, factory, country, etc., usually measured over a specific period of time.

Profit

The profit achieved when the revenue from business operations surpasses all associated expenses, costs, and taxes required to maintain those operations.

Demand Schedule

A demand schedule is a table showing the quantity demanded of a good or service at different price levels, typically illustrating the inverse relationship between price and quantity demanded.

Marginal Cost

The variation in overall expenses that occurs with a one-unit increase in production.