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Key Terms

  • Point-of-Sale (POS) System: System for recording sales transactions at point of sale
  • Cetrel: Luxembourg payment system for card payments
  • Tip: Gratuity given to service staff (cash tips vs. card tips/service charges)
  • FIFO (First-In-First-Out): Inventory valuation method assuming oldest inventory sold first
  • Weighted Average: Inventory valuation method using average cost
  • Customer Returns: Products returned by customers, reducing sales
  • Customer Allowances: Price reductions for damaged goods or discounts
  • Time-Based Billing: Billing method based on hours worked
  • Project Accounting: Accounting system tracking costs and revenue by project
  • Revenue Recognition: Process of recording revenue when earned
  • Advance Payments (Unearned Revenue): Payments received before service delivery
  • Retainer: Prepaid service agreement, recognized as services provided
  • Payment Gateway: Service processing online payments
  • Cross-Border VAT: VAT rules for sales across EU borders
  • Digital Goods: Electronic products (software, e-books, music, videos)
  • One-Stop Shop (OSS): EU system for simplified VAT reporting
  • Direct Materials: Raw materials directly used in production
  • Direct Labor: Labor directly related to production
  • Job Costing: Cost accounting method tracking costs by job/order
  • Custom Order: Unique product order for specific customer

End of Chapter 32 Key Terms