In Recording the Sale of Accounts Receivable the Commission Charged

question 223

Multiple Choice

In recording the sale of accounts receivable the commission charged by a factor is recorded as

• A) Bad Debt Expense.
• B) Commission Expense.
• C) Loss on Sale of Receivables.
• D) Service Charge Expense.

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Definitions:

Overhead Efficiency

The measurement of how effectively a business or project manages its overhead costs.

Fixed Overhead Budget

A plan that outlines anticipated fixed costs that do not vary with the level of production or sales.

Fixed Overhead Volume

The quantity of fixed overhead costs that do not change with the level of production or activity.

Standard Cost

An estimated or predetermined cost of performing an operation or producing a good, used in budgeting and pricing decisions.