Sarah is opening up a lemonade stand. On June 1 st she spends $300 on lemonade mix,
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Question:
Sarah is opening up a lemonade stand. On June 1st she spends $300 on lemonade mix, $100 on cookie dough, $50 on cups and $50 on ice. She also pays her mom $10 for renting a table. Based on the matching concept, which of the following is true regarding the recording of costs as it relates to those items?
- She should record the cost of all the items when they are paid for.
- She should record the cost of the lemonade mix, cookie dough, cups and ice as it is paid for
- She should record the cost of all the items each time she sells a cup of lemonade
- She should record the cost of the lemonade mix, cookie dough, cups and ice each time she sells a cup of lemonade.
Related Book For
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
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