Philips Corp

question 50

Multiple Choice

Philips Corp. is unsure how to record the following transactions: •$60,000 of goods shipped F.O.B shipping point on December 28, 2012.
•$50,000 of goods shipped F.O.B. destination point on December 31, 2012.
What amount of sales related to these two transactions should Philips Corp. record in fiscal 2012?

• A)$0
• B)$50,000
• C)$60,000
• D)$110,000

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Definitions:

Budgets

Financial plans that estimate income and expenditures for a specific period of time, often used by businesses and individuals for planning purposes.

Budgeting Process

A systematic approach to estimating the financial performance and resource requirements of a business for a future period, typically involving setting goals and preparing detailed plans.

Management Levels

The multiple layers of management in an organization, typically ranging from top-level executives to mid-level and then first-level managers.

Budget Standards

These are predetermined costs or revenues that serve as benchmarks for evaluating the performance of different departments within an organization.