The Revenue Cycle Consists of

question 51

Multiple Choice

The revenue cycle consists of

• A)one subsystem-order entry
• B)two subsystems-sales order processing and cash receipts
• C)two subsystems-order entry and inventory control
• D)three subsystems-sales order processing, credit authorization, and cash receipts

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Definitions:

Variable Costs

Expenses that vary directly with changes in production volume or service levels.

Joint Products

Products that are produced simultaneously from the same process or batch of raw materials.

Split-off Point

The stage in a joint production process where distinct products become separately identifiable.

Joint Costs

Costs that are incurred up to the split-off point in a process that produces joint products.