Credit Policy Requires Establishing​

question 41

Multiple Choice

Credit policy requires establishing​

• A) the optimal level of inventory​
• B) ​the terms of enforcement
• C) ​the minimum level of inventory
• D) ​the average collection period

---

Definitions:

Variances

Differences between planned, budgeted, or standard costs and actual costs, used in performance measurement and control.

Standard Cost

A predetermined cost of manufacturing, delivering, or producing goods under normal conditions.

Standard Cost System

An accounting system that estimates the cost of products in advance, using standard rates for materials and labor.

Direct Labor-Hours

The hours worked by employees directly involved in manufacturing goods, which is used as a basis for assigning labor costs to products.