Describe Values-Based Leadership

question 55

Essay

Describe values-based leadership.

Calculate the net realizable value of accounts receivable and adjustments for bad debt expense.

Understand the role and calculation of an allowance for doubtful accounts.

Distinguish between accounts receivable, notes receivable, and other receivables.

Explain the purposes and processes involved in factoring receivables.

---

Definitions:

Absorption Costing

A calculation method in accounting that compiles all production-related costs, namely direct materials, direct labor, and every overhead cost (both variable and fixed), into the product's pricing.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and treats fixed manufacturing overhead as an expense of the period.

Unit Product Cost

The total cost (both variable and fixed) associated with producing a unit of product, including materials, labor, and overhead.

Variable Costing

Accounting method that considers only variable costs (costs that change with production volume) in the calculation of product cost, excluding fixed costs.