Goods Received Are Inspected and Counted to

question 10

Multiple Choice

Goods received are inspected and counted to

• A)determine that the goods are in good condition
• B)determine the quantity of goods received
• C)preclude payment for goods not received or received in poor condition
• D)all of the above

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Definitions:

Relevant Range

The range of activity within which assumptions about variable and fixed cost behavior are valid.

Variable Cost

Expenses that change in proportion to the volume of goods or services produced by a business.

Activity

An event that causes the consumption of overhead resources in an organization.

Cost Driver

A factor that causes a change in the cost of an activity, such as machine-hours or labor hours, used in determining pricing and profitability.