Under the Perpetual Inventory System,when a Wholesaler Returns the Goods

question 28

Multiple Choice

Under the perpetual inventory system,when a wholesaler returns the goods purchased on account,the ________ account is credited.

• A) Accounts Receivable
• B) Merchandise Inventory
• C) Cost of Goods Sold
• D) Accounts Payable

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Definitions:

Average Variable Costs

The total variable costs of production divided by the quantity of output produced, reflecting costs that change with production levels.

Desired Profit

The target amount of money a business aims to earn over a certain period.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Average Variable Cost

The total variable costs of production divided by the number of units produced, representing the variable cost per unit.