Managerial Accounting Is an Activity That Helps Managers Determine Costs

question 25

True/False

Managerial accounting is an activity that helps managers determine costs of products and services, plan future activities, and compare actual to planned results.

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Definitions:

Purchases Discount

A reduction in the price of goods that a buyer can avail of for making early payments to the supplier.

Yearly Savings Rate

The percentage of an individual's or household's income that is saved rather than spent over the course of a year.

FOB Shipping Point

A term in shipping contracts that specifies that the buyer is responsible for the cost and risk of transporting goods from the point of origin as soon as they are loaded onto the transport vehicle.

Freight Costs

Expenses associated with transporting goods from one location to another, including charges for shipping, handling, and insurance.