Match Each Following Terms with Their Correct Description from the Items

question 107

Multiple Choice

Match each following terms with their correct description from the items listed below.
-An approach that assigns actual costs of direct materials, direct labour, and overhead to products

• A)Actual cost system
• B)Job-order cost system
• C)Normal cost system
• D)Process-costing system

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Definitions:

Operating Expenses

Operating expenses are costs associated with the day-to-day functions of a business, excluding direct production costs but including things like rent, utilities, and staff wages.

Sales Revenue

The total amount of money generated from selling goods or services before any expenses are deducted.

Gross Profit Rate

The ratio of gross profit to net sales, indicating the efficiency of a company in managing its production and labor costs.

Net Sales

The sales income left after subtracting returns, reductions for damaged or missing items, and price discounts.