Match Each of the Following Terms with Their Correct Description

question 124

Multiple Choice

Match each of the following terms with their correct description from the items listed below.
-Number of units sold multiplied by sales price per unit

• A)Gross Margin
• B)Selling Expenses
• C)Sales Revenue
• D)Cost of Goods Sold
• E)Operating Income

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Definitions:

Finished Goods Inventory

Products that have completed the manufacturing process and are ready to be sold.

Absorption Costing

An accounting method that includes all manufacturing costs, both direct and indirect, in the cost of a product.

Throughput Costing

An accounting method emphasizing the costs directly associated with producing goods, excluding indirect costs like manufacturing overhead.

Variable Costing

A costing method in which variable manufacturing costs are treated as product costs while fixed manufacturing overheads are treated as period costs.