Sales Less Sales Discounts Less Sales Returns and Allowances Equals

question 42

Multiple Choice

Sales less sales discounts less sales returns and allowances equals:

• A) Net purchases.
• B) Cost of goods sold.
• C) Net sales.
• D) Gross profit.
• E) Net income.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of production, based on estimated costs and activity levels.

Direct Labor Hours

The number of labor hours spent by workers who are directly involved in the production of goods or services.

Materials Requisitions

Documents used to request the transfer of materials from inventory for production purposes or other internal use.

Job Cost Sheets

Documents that track and record all the costs associated with a specific job or project.