​Consider an Exporter That Sells Its Accounts Receivables to Another

question 33

Multiple Choice

​Consider an exporter that sells its accounts receivables to another firm that becomes responsible for obtaining payment from the various importers. This reflects:

• A) ​accounts receivable financing.
• B) ​consignment.
• C) ​factoring.
• D) ​a letter of credit.

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Definitions:

Assembling

The process of combining components or elements to form a complete item or system.

Unit-level Activity

Activities that are performed each time a unit is produced, directly associated with the production of units.

Manufacturing Overhead Costs

Expenses related to the production process that are not directly tied to the product, such as rent, utilities, and salaries of managers.

Activity-based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.