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Data on Wentz Inc. for 2008 are shown below, along with the payables deferral period (PDP) for the firms against which it benchmarks. The firm's new CFO believes that the company could delay payments enough to increase its PDP to the benchmarks' average. If this were done, by how much would payables increase? Use a 365-day year.
Job-Order Costing System
An accounting system that accumulates costs by specific jobs or orders, suitable for manufacturing or service processes that are distinctively identifiable.
Predetermined Overhead Rate
A rate calculated before a period begins, used to allocate overhead costs to products or job orders based on a certain activity base.
Automated Bandsaw
A machine equipped with a continuously looped, serrated blade for cutting materials, operated through computer or programmable logic controls.
Capacity
The maximum amount that something can contain or produce.
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