Explain why, in most cases, a seller recognizes revenue when it delivers its product rather than when it producesthe product.

Q: Companies that use OSD can deduct the cost of sales or the cost of services. Is it true or false

A: Business activities in every country are governed by certain Business laws that have direct…

Q: Cost accounting is used as a means of fixing a selling price. Select one: True False

A: Cost accounting is a method of managerial accounting which is used to calculate the total production…

Q: Which of the following is NOT a reason for companies to assign costs to products or services?

A: We know that objective of every business is to attain profitability  Now, Profit for business is =…

Q: How do the activities of manufacturers, merchandisers, and service businesses diffe

A: Solution- Business is any activity undertaken to earn profit. There can be three basic types of…

Q: How might a company simplify its use of the NRV method when final selling prices can vary sizably in…

A: Net Realizable Value (NRV) Method: NRV method is a method of joint cost allocation which takes into…

Q: Why wouldn't a service business have a "Sales revenue" account?  They are just selling their…

A: THE REVENUE IS THE FIRST SECTION OF AN INCOME STATEMENT AND IT CONTAINS BOTH THE REVENUE GENERATED…

Q: What are the possible problems associated with receiving goods ordered from a vendor/supplier?

A: Inventories are the stocks of the goods maintained by a company that can either be in the form of…

Q: A decision about one product is said to have ________ effects when a change in the sales of one…

A: A decision about one product is said to have ________ effects when a change in the sales of one…

Q: An important feature of a cost center is that a. It uses only monetary information b. It must be an…

A: Solution: The important function of a cost center is to track costs. The manager of a cost center is…

Q: Which of the following choices correctly denotes factors that can influence a company's pricing…

A: Pricing a product or service is an important task for every organisation. It is the basis for the…

Q: What is the decision rule for selling a product as is or processing it further?

A: Definition:   Differential analysis: Differential analysis refers to the analysis of differential…

Q: What are the main differences between a perpetual system  and a periodic system? In your…

A: In accounting, there may be different methods to record a financial transaction. The selling and…

Q: What is the difference between the selling price,cost of sales and labour costs of an informal and…

A: The abbreviations CP and SP stand for Cost Price and Selling Price, respectively. The cost price of…

Q: Product costs are deducted from revenue a. As expenditures are made b. When product is completed c.…

A: Product costs are costs and expenses related to production and manufacturing of goods in the…

Q: Revenue from sales of the by-product can be listed in the income statement as: a. additional cost…

A: Revenue from sale of by product is shown in the income statement as an additional sales revenue…

Q: When sales are made with a right of return, the company_ а. should recognize revenue for the full…

A: The revenue would be posted in the income statement of the company. The expenses are deducted form…

Q: Companies that use OSD can deduct the cost of goods sold or the cost of services provided. Is it…

A: Business activities in every country are governed by certain Business laws that have direct…

Q: Which of the following statements is correct?a. Sales returns and allowances increase a company’s…

A:

Q: If a company returns an item to a supplier, the supplier will record the return as: shrinkage. O a…

A: The item purchased by the company from the supplier is Purchase for the company and Sales for the…

Q: Required: Describe what this information indicates about the differences in approach between the two…

A: Personal services mean to focuses on the benefits of the company. These services include a higher…

Q: The application of the lower of cost or market rule to inventory valuation is an example of a. the…

A: The valuation of inventory is done at lower of cost or net realisable value as per relevant…

Q: Leah Clement believes that the allocation of cost of goods available for sale should be based on the…

A: Cost of Good Sold: Cost of goods sold (COGS) refers to the direct costs of manufacturing the…

Q: Cost of goods sold is a major expense of a service business

A: Cost of goods sold refers to the sum of direct costs incurred by the company for producing the…

Q: What is a reasonably foreseeable use of a productand why is it important to companies?

A:

Q: etc. The return of such goods to the suppliers is recorded in the

A: Option a is wrong because one among the options is correct. Option b is wrong because returns inward…

Q: sales commissions are regarded as a product costs true false

A: Period Costs are costs which are not assigned to the products but are charged as expenses against…

Q: Conceptually, how would you evaluate a quantity discount offerfrom a supplier?

A:

Q: What is the purpose of Target Profit and why is it used in the Retail industry?

A: Targeted profit is the amount of profit that business executives expect to receive at the end of the…

Q: Which two economic concepts are fundamental to the relevance of fair values to accounting? i. The…

A: The two economic concepts are fundamental to the relevance of fair values to accounting are…

Q: Cost of Goods Sold is:   Multiple Choice   A revenue account.   An asset account.   A permanent…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

Q: While discovering gross benefit under ingestion costing, just that part of    producing overheads…

A: Ingestion costing considers all manufacturing costs, it includes both direct and indirect…

Q: Which of the following statements is TRUE? Joint product allocation results in more accurate…

A: Joint products are multiple products which are produced within a single process that means they…

Q: Please check if my statement of the cost of goods manufactured and sold in good form is correct.…

A: Cost of goods manufactured shows total costs incurred on manufacturing and production of goods. It…

Q: In applying the revenue recognition​ principle, which of the following statements regarding multiple…

A: Explanation: For an example  If an entity has signed a contract that has to perform more than one…

Q: Explain why using cost as a transfer price is inappropri-ate when the center producing the product…

A: Profit Center: A profit center may be a part of a business that is expected to form an identifiable…

Q: Why would a company’s manager be concerned about the quantity of its purchases returns if its…

A: Purchase returns means return of merchandise to the suppliers or vendors due to low quality or any…