_______ Are Those Costs Associated with Ordering Materials from the Ordering

question 18

Multiple Choice

_______ are those costs associated with ordering materials from the ordering cost through receiving, inspection, and storage.

• A)Cover costs
• B)Lost cost
• C)Inventory costs
• D)Carrying costs
• E)Rolling costs

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Definitions:

Increase in Accounts Receivable

A situation where the amount of money owed by customers to a company grows due to sales on credit outpacing payments received.

Credit Sales

Sales made by a business where the payment is to be received at a later date, extending credit to customers.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that might not be collected, reducing the total value of accounts receivable by a corresponding amount.