The Quantitative Expression of a Plan Stated in Either Physical

question 3

Multiple Choice

The quantitative expression of a plan stated in either physical or financial terms or both is called a:

• A) Cost of goods sold statement
• B) Financial statement
• C) Budget
• D) Cost of goods manufactured statement

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Definitions:

Gross Price Method

An accounting method where inventory purchases are recorded at their gross price, without deducting any available cash discounts.

Net Realizable Value

The estimated selling price of goods, less the costs of their sale or disposal.

Bad Debt Expense

The cost associated with accounts receivable that a company does not expect to collect because customers default on payments.

Operating Expense

Costs necessary for maintaining the day-to-day operations of a business, excluding costs associated with the production of goods or services.