The ______ of Receivables Collection and Payment of Accounts Payable

question 30

Multiple Choice

The ______ of receivables collection and payment of accounts payable are key determinants in whether a firm is cash rich or cash poor.

• A) quantity
• B) cost
• C) difference
• D) interest
• E) timing

---

Definitions:

Direct Material Units

Refers to the physical units of raw materials that are directly traceable and integral to the finished product.

Standard Costing

A cost accounting method that assigns a fixed cost to inventory and measures any variances to actual costs.

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected for the level of production achieved, often related to workforce productivity.

Variable Overhead

Costs that fluctuate with the level of production or business activity, such as utilities or raw materials.