The Production Cycle Differs from the Revenue and Expenditure Cycles

question 77

Multiple Choice

The production cycle differs from the revenue and expenditure cycles for all the following reasons except

• A)cost accounting is involved in all activities.
• B)not all organizations have a production cycle.
• C)there are no direct external data sources or destinations.
• D)very little technology exists to make activities more efficient.

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Definitions:

Delivery

The process of transporting goods from one location to another or the act of transferring ownership or possession of an asset from a seller to a buyer.

Sale on Approval

A conditional sales agreement allowing the buyer to return the item if it doesn't meet their approval.

Destination Contract

A contract under which the seller is required to deliver goods to a place of destination. The title and risk of loss remain with the seller until the goods reach the place of destination.

Needlework

The art or craft of sewing or embroidering, often done by hand, on fabric.