Which of the Following Statements Is True

question 70

Multiple Choice

Which of the following statements is true?

• A)In a pre-billing system, invoices are prepared after the goods have been shipped and the sales order notification has been matched to the shipping's billing notification.
• B)In a post-billing system, invoices are prepared upon acceptance of the customer order.
• C)Of the two types of billing systems discussed in the text, the pre-billing system requires the more accurate inventory records.
• D)Of the two types of billing systems discussed in the text, the pre-billing system is appropriate in situations where there is a significant delay between acceptance of the customer's order and its shipment.

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Definitions:

Guaranteed Contracts

Agreements that ensure certain terms, such as payment or service delivery, regardless of future circumstances or performance.

Salaries

Regular payments made to employees for their labor or services, typically expressed as annual amounts but paid in smaller increments such as monthly or biweekly.

Variable Cost

Expenses that change in proportion to the level of production or sales in a company.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.