Receivables Turnover Is the Reciprocal of the Collection Period Times

question 27

True/False

Receivables turnover is the reciprocal of the collection period times 365.

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Definitions:

Time-Driven Activity-Based Costing

A costing method that assigns costs to products or services based on the amount of resources they use, measured in time, enhancing cost accuracy and managerial decision-making.

Customer Cost Analysis

An evaluation process to determine the total cost associated with acquiring and maintaining a customer over time.

Customer Support Department

A specialized unit within a company that handles inquiries, complaints, and other interactions with customers to facilitate satisfaction and resolve issues.

Time-Driven Activity-Based Costing

An accounting method that assigns costs to products or services based on the actual time activities consume, improving accuracy in costing.