The Lag from Ordering an Item Until It Is Received

question 97

Multiple Choice

The lag from ordering an item until it is received and ready for use or sale is referred to as

• A)order cycle time.
• B)order handling time.
• C)order-to-ship duration.
• D)purchase cycle.
• E)logistics cycle

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Definitions:

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a tangible asset over its useful life in equal installments.

Depreciation

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life, reflecting the reduction in value over time.

Useful Life

The estimated period over which an asset is expected to be usable by the entity owning it, affecting depreciation calculations.

Adjusting Entries

At the end of an accounting interval, journal entries are made for the allocation of profits and expenses to the time frame in which they were genuinely incurred.