Pledged fiNancing Is a Short-Term fiNancing That Involves Either the Assignment

question 166

True/False

Pledged financing is a short-term financing that involves either the assignment of receivables to
another company for collection.

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs, contributing towards fixed costs and profit.

Selling Price

The amount of money charged to customers for a product or service, determined by factors like cost, market demand, and competition.

Break-even Sales

The amount of revenue from sales that is exactly sufficient to cover all fixed and variable expenses, resulting in zero profit or loss.

Break-even Point

The point at which total expenses match total income, leading to neither a loss nor a profit.