The Customer Open Order File Is Used to

question 26

Multiple Choice

The customer open order file is used to

• A)respond to customer queries
• B)fill the customer order
• C)ship the customer order
• D)authorize customer credit

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Definitions:

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding expenses and revenues that are unrelated to the primary business activities.

Absorption Costing

Absorption costing is an accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed manufacturing overhead.

Fixed Manufacturing Overhead

Costs that do not change with the level of production activity, such as salaries of managers, depreciation of factory equipment, and utility costs of the factory.