A Disadvantage of Debt Factoring Is

question 9

Multiple Choice

A disadvantage of debt factoring is:

• A) it can be seen as an indication that the business is having financial difficulties.
• B) it can create uncertain cash flows.
• C) it can mean greater time is taken up with the management of accounts receivable.
• D) all of the above.

Distinguish between real and nominal values in economic indicators.

Identify the effects of changes in GDP on a nation's economic health.

Understand the relationship between GDP per capita and quality of life measures.

Interpret the impact of economic policies on GDP and overall economic welfare.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, estimated before the costs are incurred.

Factory Overhead

The total of all the indirect costs associated with manufacturing, not including direct labor or direct materials.

Applied to Production

Pertaining to costs or accounting methodologies directly associated with the manufacturing or creation process of goods or services.

Work in Process Inventory

Goods partially completed but not yet ready for sale, particularly in manufacturing, representing an ongoing production stage.