Costs Refer to the Sum of the Fixed and Variable

question 42

Multiple Choice

costs refer to the sum of the fixed and variable costs for any given level of production.

• A) Target
• B) Total
• C) Value-based
• D) Marginal
• E) Break-even

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Definitions:

Short-term Receivables

Amounts due to a company that are expected to be received within one year from the date of the balance sheet.

Fair Value

The cost one would incur to sell an asset or to assume a liability during a structured exchange with participants in the market at the time of assessment.

Net Realizable Value

The estimated selling price of goods minus the sum of the cost of completion and the costs necessary to make the sale.

Allowance for Uncollectibles

An accounting provision made for accounts receivable that may not be collected due to customer defaults or other reasons.