Your fiRm Deals Strictly with Four Customers

question 360

Multiple Choice

Your firm deals strictly with four customers. The average amount each customer pays per month along with the collection delay associated with each payment is shown below. Given this
Information, what is the weighted average delay? Assume that every month has 30 days.

• A) 1.89 days
• B) 2.13 days
• C) 3.55 days
• D) 3.75 days
• E) 4.00 days

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Definitions:

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (standard) cost, indicating how material cost fluctuations affect production costs.

Quantity Standard

The expected or budgeted quantity regarding inputs or outputs, used as a performance measure or pricing basis.

Price Standard

A predetermined cost that represents what should be paid for a unit of input, such as materials or labor.

Materials Price Variance

Materials price variance is the difference between the actual cost of materials used in production and the standard cost expected, it can indicate changes in market prices or purchasing efficiency.