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Revenue Process
Conversion Process
Expenditure Process
Miscellaneous
Pricing
100
What is it when the company must determine whether it wants “brick and mortar” sales, Internet sales, etc. They must decide on credit policies (cash sales versus credit sales) and they must decide whether sales calls will be made.
What is determining marketing and distribution channels to generate sales?
100
What is it when the company must decide what products and what quantities should be manufactured and when?
What is scheduling production?
100
What is it when the company must have a person or persons authorized to order goods.
What is determining the need for goods and services?
100
What is it when items are shipped but the title passes at the customer’s location?
What is FOB destination?
100
What is setting a selling price that can be maintained over the life cycle of the product by first determining cost, then adding a markup to determine selling price
What is life cycle pricing?
200
What is it when the company must determine the credit and payment policies for specific customers and whether the goods/services are available. A sales discount is an inducement to customers to pay their bills in a timely manner. The discount allows the customer to pay less than the full amount of the sales invoice.
What is receiving and accepting orders?
200
What is it when direct materials are requisitioned from the secured-storage location by an authorized person(s).
What is obtaining direct materials?
200
What is it when the company must determine where to buy the items it needs.
What is selecting suppliers and order goods/services?
200
What is it when items shipped has the title passed at the seller’s location.
What is FOB shipping point?
200
What is setting a selling price that can be maintained over the life cycle of the product by first determining the selling price, then subtracting a required return to determine the target cost
What is target pricing?
300
What is it when the company must ship the goods or deliver the services. Items can be shipped FOB destination whereby the title passes at the customer’s location or FOB shipping point whereby the title passes at the seller’s location.
What is delivering goods/services?
300
What is it when once the direct materials are available, labor and other resources (machines, electricity, etc.) are used to convert the direct materials into finished products. Manufacturing overhead is the cost of all indirect manufacturing resources such as machines, electricity, etc.
What is using labor and other manufacturing resources to make products?
300
What is it when the company must inspect, store, and secure the items it has purchased. In addition, the company might require a purchase return when its sends back items to the supplier or a purchase allowance when it requests a reduction in the purchase price because the company is not satisfied with the product or service.
What is receiving goods?
300
What is a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
What is a purchase order?
300
What is setting the selling price high because a small proportion of our customers are willing to pay a higher price in order to be the first to have our product (legal)
What is skimming pricing?
400
What is it when the company must bill the customer and then record the receipt from the customer?
What is receiving payment from customer?
400
What is it when companies want to minimize the time that finished goods are stored and many companies have adopted JIT.
What is storing finished goods until sold?
400
What is it when the company must ensure that it pays only for goods ordered and received. In addition, it should pay for its purchases in time to receive any available purchase discounts.
What is paying for goods?
400
What is the cost of all indirect manufacturing resources such as machines, electricity, etc.
What is manufacturing overhead?
400
What is setting an initial low price to entice people to try the product and to gain a market share (legal)
What is penetration pricing?
500
What is it when the company must support customers after the sale by providing customer training, etc. In addition, companies often experience sales returns when a customer returns merchandise and sales allowances when the customer is given a reduction in the selling price because they are not satisfied with the product or the service.
What is providing customer support?
500
What is consisted of scheduling production, obtaining direct materials, using labor and other manufacturing resources to make products, and storing finished goods until sold?
What is the conversion process?
500
What contains the primary activities to determine the need for goods and services, selecting suppliers and order goods/services, receive goods, and pay for goods?
What is the expenditure process?
500
What is incurred in connection with the conversion process. They are associated with producing the product.
What is a product cost?
500
What is setting the selling price high to take advantage of a temporary increase in demand (unethical and possibly illegal)
What is price gouging