The Time Component Under Time-And-Material Pricing Includes a

question 63

Multiple Choice

The time component under time-and-material pricing includes a

• A) loading charge.
• B) charge for receiving, handling, and storing materials.
• C) portion of the materials clerk's wages.
• D) profit margin.

---

Definitions:

Letter Of Credit

A written statement by a bank that money will be paid, provided conditions specified in the letter are met.

Factored Inventory Loan

A type of financing where a company borrows money against the value of its inventory, which is often controlled or managed by the lender.

Line Of Credit

A financial arrangement between a lender and a borrower that allows the borrower to draw funds up to a predefined limit as needed.

Operating Cycle

The operating cycle is the duration it takes for a business to convert its inventory and other inputs into cash through sales, encompassing the production and sales process.