Assets Created by Selling Products or Services on Credit Are

question 193

Multiple Choice

Assets created by selling products or services on credit are

• A)Expenses.
• B)Accounts receivable.
• C)Accounts payable.
• D)Equity.
• E)Liabilities.

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Definitions:

Monthly Demand

The total quantity of a product that consumers are willing and able to purchase within a month.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies with production volume.

Opportunity Cost

The value of the best alternative foregone as a result of making a decision, representing the benefit that could have been gained from the next best choice.

Fixed Manufacturing Cost

This refers to the consistent expenses incurred by a company for its manufacturing operations, excluding variable costs; it includes costs like rent, salaries of permanent staff, and depreciation of factory equipment.