What Type of System Allows a Customer's Bank to Periodically

question 22

Multiple Choice

What type of system allows a customer's bank to periodically transfer funds from its account to a selling firm's bank account for payment of bills?

• A) Disbursement agreement
• B) Preauthorized debit system
• C) Lockbox agreement
• D) Concentration banking system
• E) Zero-balance account

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Definitions:

Unit Product Cost

The total cost to produce one unit of a product, including direct materials, direct labor, and allocated manufacturing overheads.

Absorption Costing

An accounting method that includes all manufacturing costs - direct labor, direct materials, and both variable and fixed overhead - in the cost of a product.

Unit Product Cost

The complete expenditure involved in creating a single item of a product, encompassing both fluctuating and constant costs.

Absorption Costing

An approach to determining product costs that incorporates all expenses related to production, such as direct materials, direct labor, and variable and fixed overhead costs.