In a Small Batch Organization

question 40

Multiple Choice

In a small batch organization,

• A)the structure is likely to be mechanistic.
• B)decision making is typically centralized.
• C)people tend to make mutual adjustments.
• D)procedures are formal and rule-oriented.
• E)the emphasis is on low variety and high volume.

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Definitions:

Uncollectible

Refers to accounts receivable that are unlikely to be recovered and are therefore considered as bad debt.

Allowance Method

An accounting technique used to account for potential uncollectible receivables by estimating and recording bad debts expense ahead of specific account identifications.

Uncollectible Receivables

Receivables from sales or loans that are not expected to be collected, often written off as bad debts.

Estimate

An approximation or educated guess used to project future financial outcomes or the potential costs of projects.