In the Concept of Total Distribution Cost,which of the Following

question 70

Multiple Choice

In the concept of total distribution cost,which of the following is NOT an inventory carrying cost? 

• A) Taxes
• B) Insurance
• C) Obsolescence and deterioration
• D) Materials handling

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Definitions:

Uncollectible Accounts

Accounts receivable that a business cannot collect, often recognized as an expense as bad debt or written off.

Aging

A method used in accounting to categorize accounts receivable based on the length of time an invoice has been outstanding.

Accounts Receivable

Accounts receivable refer to the money owed to a company by its customers for goods or services already delivered but not yet paid for.

Allowance for Doubtful Accounts

An account that offsets assets, specifically designed to anticipate the part of accounts receivable that might be uncollectible.