Deciding Whether to ________ to a Customer in an Adjustment

question 53

Short Answer

Deciding whether to ________ to a customer in an adjustment message is a debatable issue.Some attorneys discourage doing so,but many customers appreciate it.

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Definitions:

Retained Earnings

Retained earnings represent the accumulated net income of a company that has not been distributed to shareholders as dividends but is reinvested in the business.

FOH Volume Variance

A measurement in managerial accounting that compares the budgeted factory overhead for actual production volumes against the applied factory overhead based on standard costing.

FOH Budget Variance

The difference between the actual factory overhead costs incurred and the overhead costs allocated to production based on budgeted rates.

Fixed Manufacturing Overhead

Costs that do not change with the level of production, including salaries, rent, and insurance.