Bradley Mfg

question 121

True/False

Bradley Mfg. changed its credit terms from 2/10 net 30 to 2/10 net 40. It is reasonable to assume that the firm's ACP will be increased by this action.

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Definitions:

Production Departments

Divisions within a manufacturing company dedicated to specific production processes or tasks.

Journalize

The process of recording financial transactions in a company's journal, the first step in the accounting cycle that chronicles all financial activities.

Factory Overhead Rate

The total indirect manufacturing costs associated with production, allocated over a specific base such as labor hours or machine hours.

Machine Hours

A measure of production time used in cost accounting to allocate costs to products or services based on the time they spend being processed on a machine.