Match the Following Terms with Their Definitions

question 60

Multiple Choice

Match the following terms with their definitions.
-FOB destination

• A)Criteria on invoice
• B)Seller pays cost of freight
• C)Could be calculated by table look-up
• D)Savings from early payment
• E)Cash discount within first 10 days in next month after sale
• F)Amount of time to take advantage of a cash discount
• G)Discount period begins when goods are received
• H)100% less stated percent
• I)List price minus amount of trade discount
• J)Time period sellers give buyers to pay invoices
• K)1 - net price equivalent rate
• L)Buyer pays cost of freight
• M)Actual cost to buyer per dollar
• N)2/10, n/30
• O)Two or more trade discounts
• P)List price minus net price
• Q)Suggested retail price

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Definitions:

Production Activity

The series of operations involved in the manufacturing of goods and products.

Accounting

The process of recording, classifying, summarizing, and interpreting financial information.

Weighted-Average Method

An inventory valuation method that assigns the average cost of all similar items in the inventory to the cost of goods sold and ending inventory.

Direct Labor Cost

The total expense of paying employees who directly manufacture or produce goods, excluding indirect labor like maintenance personnel.