Match the Cost Driver in the Right Column Below to the Appropriate

question 153

Short Answer

Match the cost driver in the right column below to the appropriate function in the left column.
A)Number of shipments
B)Number of purchase orders
C)Number of employees
D)Number of customers
E)Number of desktop computers
F)Number of invoices
-Purchasing

• A)Number of shipments
• B)Number of purchase orders
• C)Number of employees
• D)Number of customers
• E)Number of desktop computers
• F)Number of invoices
• -Purchasing

Understand and calculate cash discount rates.

Calculate the payment required to settle outstanding invoices, considering sequential payments and terms.

Understand the equivalence and cumulative impact of multiple discounts on pricing.

Conceptually distinguish between the rate of mark-up on cost versus the rate of mark-up on selling price and explain scenarios where one may exceed 100%.

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Definitions:

Interest Accrued

The amount of interest that has been earned but not yet paid or received, up to a specific date, representing a company’s liability or asset depending on the context.

Discounting Note

A financial practice where a note or bill is sold to a third party before its maturity date for less than its face value, allowing the seller to access funds earlier.

Discounted Note

A promissory note sold for less than its face value, which will be worth its full value upon maturity; used as a form of short-term financing.

Interest Expense

This is the cost incurred by an entity for borrowed funds, reflected as an expense on the income statement.