The Delay Between When You Receive Payment and When the Bank

question 79

Multiple Choice

The delay between when you receive payment and when the bank gives you credit is called

• A) Disbursement Float
• B) Net Float
• C) Clearing Float
• D) Collection Float

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Definitions:

Multiple Departmental Rate

A method used in cost accounting whereby different overhead rates are applied to respective departments within a company, reflecting their varying costs.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire factory or plant, calculated by dividing total overhead costs by total base units, often labor hours or machine hours.

Volume-Related Measures

Metrics that determine the effects of production or sales volume changes on costs and revenues.

Overhead Costs

Expenses not directly tied to the production of goods or services, like rent, utilities, and administrative costs.