Match the Term with Its Definition

question 73

Multiple Choice

Match the term with its definition.
-A post office box for receiving remittances from customers

• A)cash conversion period
• B)days in inventory
• C)days in payables
• D)days sales outstanding (average collection period)
• E)lock box
• F)working capital cycle
• G)working capital management

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Definitions:

Special Materials

Materials that are uncommon, difficult to procure, or used in specialized applications.

Activity-Based Costing

An accounting method that assigns costs to products and services based on the resources they consume and the activities they require.

Overhead Costs

Indirect costs of products or services.