Lewisburg Corp

question 54

True/False

Lewisburg Corp.had sales during the year of $15,000,000 and an average accounts receivable of $5,000,000.Its accounts receivable turnover ratio is 0.33 times.

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Definitions:

Batch-level Costs

Expenses that are incurred every time a batch of goods is produced, relating to tasks like setup and inspection.

Activity-based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the amount of resources they use.

Overhead Allocation Rates

The rates used to apply manufacturing overhead to products or job orders based on a relevant activity base.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific products or projects, based on the activities that drive costs.