The Document One Business Sends to Another Business That Identifies

question 37

Multiple Choice

The document one business sends to another business that identifies the goods or services to be paid and the amount is:

• A)check
• B)purchase requisition
• C)vendor invoice
• D)disbursement voucher

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Definitions:

Variable Costing

An approach in accounting that takes into account only the variable aspects of production costs (such as direct materials, direct labor, and variable manufacturing overhead) in the computation of product prices.

Net Operating Income

Net Operating Income is a measure of a company's profitability from its regular business operations, excluding income and expenses from interest, taxes, and other non-operational activities.

Fixed Manufacturing Overhead

Regular, constant expenses related to the production process that are not affected by the level of goods produced, such as rent and salaries of management.

Ending Inventory

The total value of all inventory that a company still has on hand at the end of a reporting period.