Sales Returns

question 157

Multiple Choice

Sales returns:

• A) Refer to merchandise that customers return to the seller after the sale.
• B) Refer to reductions in the selling price of merchandise sold to customers.
• C) Represent cash discounts.
• D) Represent trade discounts.
• E) Are not recorded under the perpetual inventory system until the end of each accounting period.

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Definitions:

Fill Orders

The process of completing customer orders by preparing and shipping the requested products.

Throughput Time

The total time required to produce a product from start to finish, including processing, inspection, and delivery times.

Fill Orders

The process of completing customer orders by preparing and dispatching the requested goods.

Manufacturing Cycle Efficiency

A metric that measures the effectiveness of a manufacturing process, focusing on the ratio of productive time to total cycle time.