Accounting Profits Are Calculated Based Upon

question 120

Multiple Choice

Accounting profits are calculated based upon:

• A) explicit cash receipts and implicit expenditures of cash.
• B) actual cash receipts and actual expenditures of cash.
• C) implicit cash receipts and actual expenditures of cash.
• D) opportunity costs plus explicit costs.

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Definitions:

Just-in-time (JIT)

An inventory management strategy that arranges the receipt of resources and materials right at the moment they are needed, reducing storage costs.

Cross-docking

A logistics practice where incoming shipments are unloaded directly from supplier or manufacturing transport onto outbound trucks, trailers, or rail cars with minimal or no storage in between, reducing inventory holding times and costs.

Inventory Investment

The purchase of goods and materials that a company holds in anticipation of future sales, representing a significant part of its assets.

Radio Frequency Identification

A technology that uses electromagnetic fields to automatically identify and track tags attached to objects, containing electronically stored information.