When Credit Is Granted to a Firm, It Is Called

question 53

Multiple Choice

When credit is granted to a firm, it is called:

• A)consumer credit.
• B)trade credit.
• C)accounts receivable.
• D)all of the above.
• E)b and c

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Definitions:

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product cost.

Management

The process of planning, organizing, leading, and controlling an organization's resources to achieve specific goals.

Variable Costing

A costing method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of production, excluding fixed overhead.

Operating Income

Earnings from a company's core business operations, excluding deductions of interest and taxes.