Which of the Following Type(s) of Companies Use a "Cost

question 129

Multiple Choice

Which of the following type(s) of companies use a "cost of goods sold, inventory, and purchases" budget?

• A) Manufacturing
• B) Merchandising
• C) Service
• D) Not-for-profit

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Definitions:

FASB

The Financial Accounting Standards Board, which is responsible for establishing and improving financial accounting and reporting standards in the United States.

IASB

The International Accounting Standards Board, an independent body that establishes and approves accounting standards.

Allowance For Doubtful Accounts

An accounting concept referring to a reserve for accounts receivable that may not be collectible.

Aging

A method used in accounting to categorize accounts receivables based on the length of time an invoice has been outstanding to manage and track debts.