Managerial Accounting Is Used in Manufacturing and Merchandising Companies,but Not

question 198

True/False

Managerial accounting is used in manufacturing and merchandising companies,but not in service companies.

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Definitions:

Inventory Cost

The total cost associated with buying or producing goods, including purchase price, materials, labor, and overhead, until they are sold.

Sales

The activities involved in selling goods or services to customers, including the negotiation of sales agreements and the collection of revenue.

Credit Memo

A document issued to a purchaser by a vendor to reduce the amount that the purchaser owes, often as a result of a return or refund.

Gross Profit

The difference between the revenue earned from sales and the cost of goods sold, not accounting for other expenses.