Concept explainers
Explain the difference between a customer’s order and a sales order, as these terms might be used by a manufacturing company making sales on credit.
Differentiate between the customer’s order and a sales order.
Explanation of Solution
Customer’s order:
The customer’s order is nothing but the purchase order given by the customer. This document will have the specification of the goods or services to be delivered to the customers from their end.
Sales order:
The sales order is the document created based on the purchase order of the customer. This document will have all the specification for the different departments involved in delivering the goods or services to the customers such as credit department, shipping department, billing department, and accounts receivable department.
Difference between the customer’s order and sales order:
The major difference between the customer’s order and the sales order is the details of the documents. As the customer’s order is the external order created by the customer whereas sales order is the internal order created based on the purchase order.
Want to see more full solutions like this?
Chapter 11 Solutions
Principles Of Auditing & Other Assurance Services
- Anjali Brewery has estimated budgeted costs of $72,600, $78,900, and $85,200 for the manufacture of 4,000, 5,000, and 6,000 gallons of beer, respectively, next quarter. What are the variable and fixed manufacturing costs in the flexible budget for Anjali Brewery?arrow_forwardDetermine the depreciationarrow_forwardHello tutor please help me this questionsarrow_forward
- Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College PubCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeAuditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningAccounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,