John Jones of Jones Corporation Determined That the Cost Related

question 16

Multiple Choice

John Jones of Jones Corporation determined that the cost related to processing an invoice from a supplier was approximately $100 per invoice.This cost is an example of:

• A)Inventory holding (or carrying)cost.
• B)Inventory investment.
• C)Wasted expense.
• D)Order cost.

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Definitions:

Check Stub

The part of a check that is retained as a record, detailing the amount paid, to whom, and for what purpose.

Balance Brought Forward

A term used in accounting to describe the amount carried over from a previous period or page in a financial statement or ledger.

Check Amount

The numeric value indicating the total funds payable by the check.

Balance Carried Forward

The amount of money from a previous accounting period that is transferred to the current period's accounts.