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MBUS 300 Chapter 3 questions n answers rated

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MBUS 300 Chapter 3 questions n
answers rated 2025/2026

Three different kinds of companies - ANS ✔✔Service Companies, Merchandising,
Manufacturing



Merchandising businesses - ANS ✔✔generate revenue by selling goods



Revenue - cost of goods sold (expense) = Gross Profits - ANS ✔✔



Gross Profit - (general and Administration expenses) = operating income - ANS ✔✔



Selling & Admin costs -- Costs that are not included in the inventory are also called.... - ANS
✔✔period costs



Product costs - ANS ✔✔costs included in inventory



gross profits also called - ANS ✔✔gross margin



perpetual inventory system - ANS ✔✔inventory increased for each item purchased, inventory
decreased for each item sold



FOB - ANS ✔✔Free on board



FOB shipping point - ANS ✔✔buyer pays

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