Processing Float; Time It Takes the Receiving Firm to Process

question 5

Short Answer

Processing float; time it takes the receiving firm to process incoming mail,prepare the bank deposit,and take the deposit to the bank

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Definitions:

Equivalent Units

A concept used in cost accounting to normalize units of production for inventory costing purposes, taking into account partially completed units.

Work In Process

Inventory items that are in the production process but have not yet been completed or transformed into finished goods.

Conversion Costs

These are the combined costs of direct labor and manufacturing overhead that are incurred to convert raw materials into finished goods.

Equivalent Units

A concept used in cost accounting to express the amount of work done on unfinished goods in terms of completed units of output.