Which One of the Following Is a Disadvantage of Using

question 161

Multiple Choice

Which one of the following is a disadvantage of using credit?

• A)Receiving advance notice of sales
• B)Temptation to overspend
• C)Avoiding the necessity of carrying cash
• D)Ease of returning merchandise
• E)Having a record of all purchases

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Definitions:

Equivalent Unit

a concept used in cost accounting to represent a partial unit of production, allowing for the calculation of costs for partially completed products.

Process Costing

An accounting methodology used to allocate costs to units of product in continuous processes or industries where identical products are produced.

Conversion Costs

The total expenses of manufacturing overhead and direct labor required to transform raw materials into finished products.

Equivalent Units

A concept used in cost accounting to express the amount of goods or services produced in terms of the number of complete units.