Pledges of Accounts Receivable Are Normally Made on a Nonnotification

question 67

True/False

Pledges of accounts receivable are normally made on a nonnotification basis, meaning that a customer whose account has been pledged as collateral in not notified.

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Definitions:

Machine-Hours

A measure of the amount of time a machine is utilized during the production process, often used in cost accounting to allocate expenses.

Job-Order Costing

A costing method used to accumulate costs associated with a specific batch of products or job, allowing for detailed tracking of production expenses.

Overapplied Overhead

A situation where the allocated manufacturing overhead cost is more than the actual overhead incurred.

Manufacturing Overhead

Refers to all the indirect factory-related costs incurred from manufacturing a product that cannot be directly traced to a specific product.