Which of the Following Are Subtracted from the Purchase Price

question 35

Multiple Choice

Which of the following are subtracted from the purchase price of the inventory to determine net purchases?

• A)Freight-out and freight-in
• B)Purchase returns, purchase allowances and freight-in
• C)Purchase returns, purchase allowances, and purchase discounts
• D)None of the above

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Definitions:

Supply Curves

A graph that shows the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale at that price.

Long-Run Supply

The relationship between the price of a product and the quantity of the product a firm is willing to supply, considering all inputs are variable and adjusting to new market conditions over time.

Resource Supply

The total availability of resources, such as raw materials, labor, and capital, which can be used for production.

Marginal Revenue Product

The additional revenue generated by employing an additional unit of a resource, such as labor or capital.