What Would Be the Incremental Cost of Carrying Receivables If

question 111

Multiple Choice

What would be the incremental cost of carrying receivables if the change were made?

• A) -$108,750 (carrying costs would decline)
• B) $116,250
• C) $157,900
• D) -$225,000 (carrying costs would decline)

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Definitions:

Process Costing

An accounting methodology used to allocate costs to units of product in processes where the products are indistinguishable from each other.