Norah Is Interested in Developing Her Payables Policy

question 22

Multiple Choice

Norah is interested in developing her payables policy.She wants to make a policy for which of the following?

• A)the process and timing in which obligations to pay for goods and services received by the business will be paid
• B)the price and timing of raw materials,and other goods and services necessary to build,sell,and support products
• C)how pricing will be determined for her products and services
• D)the process and timing in which obligations to pay for products and services sold will be billed and collected

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Definitions:

Replacement Cost

The current cost of replacing an asset with a new asset of similar kind and quality, often used in insurance and accounting.

Cost Of Completion

The estimated expenses that are yet to be incurred to complete an ongoing project or to bring an asset to its intended use.

Market Value

The present cost at which a service or asset is available for purchase or sale in a market setting.

Replacement Cost

The current cost to replace an asset with a similar one of equivalent utility and quality, without considering depreciation.