Accounts Receivable Financing

question 17

Multiple Choice

Accounts receivable financing:

• A)allows small businesses to extend credit to customers.
• B)delays the time a company receives money from receivables.
• C)means borrowing money against the business's accounts receivable.
• D)is not a suggested practice due to the cost.

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Definitions:

Total Direct Labor Variance

The difference between the actual cost of direct labor used to produce goods and the standard cost of direct labor expected for those goods.

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure.

Hours

Units of time, each equal to 60 minutes, used often as a measure for billing, labor, or scheduling.

Direct Labor Time Variance

The difference between the estimated time for direct labor to complete a task and the actual time taken, indicating efficiency or productivity issues.