An order issued by a business to a customer. May be for products and/or services.
Sales Order
100
What is a conversion process?
Transforms input resources, raw materials, labor, and overhead into finished products or services for sale.
100
What are the three basic business activities in the expenditure process?
- Ordering goods, supplies, and services
- Receiving and storing goods, supplies, and services
- Paying for goods, supplies, and services
100
What is a purchase order?
A commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
100
Federal Income Tax
Employer
200
A debt that someone incurs for the purpose of purchasing a good or service.
Credit/Customer Service
200
The two subsystems of the conversion process are..
The production system and The cost accounting system
200
Ordering goods, supplies, and services: Three alternate approaches to inventory control are..
-Economic Order Quantity (EOQ)
- Material Requirement Planning (MRP)
- Just In Time (JIT) Systems
200
What is FOB?
Goods in transit should be reported as a purchase and as inventory by the buyer.
200
Social Security Tax
Both
300
Goods usually passes to the buyer. In other words, goods in transit should be reported as a purchase and as inventory by the buyer.
Shipping
300
What is the production system?
Involves planning, scheduling, and control of the physical product through the manufacturing process.
300
Receiving and storing goods, supplies, and services can improve what?
- Bar-coding
- RFID (radio frequency identification)
- EDI and satellite technology
- Audits
300
What are product costs?
The costs used to create a product.
300
Unemployment Tax
Employer
400
Legally enforceable claim for payment held by a business against its customer/clients for goods supplied and/or services rendered in execution of the customer's order.
Billing/Accounts Receivable
400
What does the Cost Accounting System do?
Records the financial effects of the events occurring in the production process.
400
Two basic sub-processes involved in the payment process are..
- Approval of vendor invoices
- Actual payment of the invoices
400
What are some cost examples of Manufacturing Overhead?
- Indirect labor
- Utilities
- Supplies
400
Medicare Tax
Both
500
The collection of money (currency, coins, checks). Not to be confused with revenues.
Cash Receipts/Collections
500
Three production methods are..
Continuous processing, Batch processing, and Make-To-Order processing.
500
Payment of the invoices is done by who?
The Cashier
500
What is supply and demand?
The amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.