Fit Apparel Company Reports the Following Data for Its First $$185,000
D)$675,000

question 19

Multiple Choice

Fit Apparel Company reports the following data for its first year of operation.

What are the total manufacturing costs to account for?

• A)$650,000
• B)$835,000
• C)$$185,000
• D)$675,000

---

Definitions:

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Percentage of Sales Method

A financial forecasting model that predicts future sales based on historical sales data.

Matching Principle

An accounting concept that dictates expenses should be recorded in the same period as the revenues they help to generate, ensuring accurate financial reporting.

Uncollectible Receivables

Debts owed to a company that are considered unlikely to be paid and are thus written off as a loss.