What Is a Purchase Return

question 11

Multiple Choice

What is a purchase return?

• A) A return of merchandise that is defective or damaged
• B) A customer refund from the sale of inventory
• C) A price reduction
• D) A return of cash to the purchaser

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Definitions:

Variable Administrative Expenses

Costs that vary in proportion to changes in an organization's activity level, such as sales commissions.

Sunk Cost

A cost that has already been incurred and cannot be recovered, and hence should not influence future business decisions.

Sunk Cost

Costs that have already been incurred and cannot be recovered or reversed.

Model 240 Machine

A hypothetical or specific name for a machine, possibly denoting a particular model or type used in manufacturing or industrial settings.