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The Days Sales Outstanding Tells Us How Long It Takes,on

question 63

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The days sales outstanding tells us how long it takes,on average,to collect after a sale is made.The DSO can be compared with the firm's credit terms to get an idea of whether customers are paying on time.


Definitions:

Standards

Established norms or requirements about technical systems and the uniformity of products and processes, often created by standardization organizations.

Part Number

A unique identifier assigned to a specific part in engineering and manufacturing for identification, ordering, and inventory management.

Assembly Drawing

A detailed drawing showing the components of a machine or a system arranged together as they would be in operating conditions.

Standard Parts

Refers to commonly used components or parts (such as screws, nuts, and washers) that have predetermined sizes and specifications.

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