Standard Costing Is Typically an Inexpensive Component to Add to a Company's

question 20

True/False

Standard costing is typically an inexpensive component to add to a company's existing cost accounting system.

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Definitions:

Other Income

Any revenue other than revenue from sales. It appears in a separate section on the income statement. Examples: Rental Income and Storage Fees.

Merchandise Inventory

Items purchased for resale to customers in the ordinary course of business, representing a current asset on the balance sheet.

Sales Discount

Amount a customer is allowed to deduct from the bill total for paying a bill during the discount period.

Revenue Account

An account in the general ledger that records the income generated by a company from its normal business operations.