Credit Terms of 2/10,n/30 Indicate That a Discount of 2

question 23

True/False

Credit terms of 2/10,n/30 indicate that a discount of 2% will be given if payment is made within 10 days of the invoice date.Otherwise,the total invoice amount is due within 30 days of the invoice date.

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Definitions:

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and tax as well as income from non-operating activities.

Variable Costing

A method of costing that includes only variable production costs (direct material, direct labor, and variable overhead) in the cost of goods sold.

Absorption Costing

A financial recording technique that incorporates every manufacturing expense such as direct materials, direct labor, alongside all overhead costs, whether variable or fixed, into the product's cost.

Company Performance

An assessment of how well a company is achieving its financial and operational objectives, commonly measured through financial indicators, sales metrics, and profitability ratios.