Costing-System Refinements Require More Data Gathering and More Analysis,and Improvements

question 63

True/False

Costing-system refinements require more data gathering and more analysis,and improvements in information technology have drastically reduced the costs to gather,validate,store,and analyze vast quantities of data.

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Definitions:

Allowance for Doubtful Accounts

An estimation of the amount of credit sales that are expected not to be collected, representing a reserve for potential bad debts.

Notes Receivable

Legally enforceable claims for money owed to a business by its customers or clients, typically evidenced by a written promise to pay.

Formal Instruments of Credit

Legal documents that acknowledge debt and specify terms of repayment, such as notes payable or bonds.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue by comparing net credit sales to the average accounts receivable.