Collection Float Is the __________

question 245

Multiple Choice

Collection float is the __________.

• A) Total time between the mailing of the check by the customer and the availability of cash to the receiving firm
• B) Time consumed in clearing the check through the banking system
• C) Time the check is in the mail
• D) Time during which the check received by the firm remains uncollected

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Definitions:

Short-Run Production Function

A mathematical representation of the relationship between input changes and output levels in a production process, considering some inputs as fixed.

Total Cost Function

The total cost function describes the total cost of production as a function of the quantity of output, including both fixed and variable costs.

Variable Factor

In economics, it refers to any input whose quantity can be changed in the short term to affect production levels.

Increasing Returns to Scale

A situation in which output increases by a greater proportion than the increase in inputs used.