A Supplier Invoice

question 50

Multiple Choice

A supplier invoice

• A) is included with the goods
• B) shows what was ordered even if all was not shipped
• C) is sent by vendor to accounts payable
• D) none of the above

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Definitions:

Operating Income

The income generated from a company's primary business activities, before subtracting any interest and tax expenses.

Contribution Margin

The difference between the sales revenue of a product and its variable costs, used to cover fixed costs and generate profit.

Variable Costing

A method of costing that includes only variable production costs — costs that change with the level of output — in the calculation of unit costs.

Production Planning

The process of forecasting, planning, and controlling the quantity, timing, and quality of production activities.