A Type of Business in Which the Principal Source of Revenue

question 61

Multiple Choice

A type of business in which the principal source of revenue is compensation for services rendered to a business firm or to a person is a

• A) mercantile enterprise.
• B) manufacturing enterprise.
• C) professional service enterprise.
• D) retail enterprise.

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Definitions:

Direct Method

An accounting approach used to allocate service department costs directly to producing departments without considering services rendered between service departments.

First-In, First-Out

An inventory valuation method where the oldest stock is sold or used first.

Weighted-Average Methods

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available during the period.

First-In, First-Out

An inventory valuation method where the oldest items are sold or used first.