UNIT 11 study guide

UNIT 11 study guide - UNIT 11 1) Gross sales = revenue To...

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UNIT 11 1) Gross sales = revenue To get net sales subtracts returns and allowances from gross sales 2) Describe, and calculations FIFO - first in, first out LIFO - last in, first out Specific Cost - Items each carry a serial number and we track them to find what we paid for each item we sold Weighted Average Calculations = look at ppt on 52 3) Advantages and disadvantages of FIFO and LIFO 4) a. •Sales Commissions b. •Advertising expense c. •Outbound Delivery (freight out) to customers d. •Other selling expenses e. •Rent, Insurance, Maintenance expenses f. •Supplies expense g. •Utilities expense h. •Payroll expense i. •Depreciation expense j. •Administrative expense (clerical, travel, dues, subscriptions, legal, etc.) EBIT •Earnings Before Interest and Tax •Sometimes called “Earnings from Operations” or “Operating Earnings” •Sometimes Before Amortization •Sometimes Before Depreciation How does it relate to gross profit? 6) Describe the non-operating expenses covered in class (interest, taxes,
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UNIT 11 study guide - UNIT 11 1) Gross sales = revenue To...

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