Once an Entity Sells Its Receivables, It No Longer Needs

question 23

True/False

Once an entity sells its receivables, it no longer needs to keep a documentary record of receivables that have been sold.

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Definitions:

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the expected wage, multiplied by the actual hours worked.

Labor Efficiency Variance

The difference between the actual labor hours taken to produce a good or service and the standard labor hours expected, multiplied by the labor rate.

Direct Labor

Labor costs directly associated with the production of goods or services, including wages for workers who physically produce a product.

Standard Costs

Preset costs for delivering a product or service under normal conditions, used as benchmarks to measure actual performance.