When Taking Notes While Reading the Chapter,you Should

question 2

Multiple Choice

When taking notes while reading the chapter,you should:

• A)write down as much as you possibly can straight from the text so as to avoid confusion.
• B)write down the questions provided and then write down the answer provided.
• C)write down the main points and vocabulary terms straight from the text to avoid confusion.
• D)write down the main points and vocabulary terms in your own words.

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Definitions:

Cost of Goods Sold

The historical cost of products sold as reported in the income statement.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the profitability of a company's core activities.

Goods Available for Sale

The total quantity of goods that a company has in its stock ready to sell at the end of a financial period.

Absorption Costing

An accounting method that includes all manufacturing costs — direct materials, direct labor, and both variable and fixed overhead — in the cost of a product.