Productivity Can Be Improved By

question 46

Multiple Choice

Productivity can be improved by:

• A) increasing inputs while holding outputs steady.
• B) decreasing outputs while holding inputs steady.
• C) increasing inputs and outputs in the same proportion.
• D) decreasing inputs while holding outputs steady.
• E) none of the above.

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Definitions:

Allowance Method

An accounting technique that estimates and records bad debts expense from credit sales.

Bad Debt Expense

An expense account representing accounts receivable that a company does not expect to collect and writes off as a loss.

Allowance for Doubtful Accounts

A contra account that reduces the total receivables on the balance sheet to reflect the amount that is expected not to be collected.

Selling Receivables

The process of selling a company's outstanding invoices to a third party to improve cash flow and reduce risk.