The Two Methods of Accounting for Uncollectible Receivables Are ________

question 146

Multiple Choice

The two methods of accounting for uncollectible receivables are ________.

• A)the direct write-off method and the liability method
• B)the asset method and the sales method
• C)the allowance method and the liability method
• D)the allowance method and the direct write-off method

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Definitions:

Variable Overhead Rate Variance

It is the difference between the actual variable overhead based on costs like utilities or materials and the standard cost that was expected.

Budgeted Production

Budgeted production refers to the anticipated quantity of products a company plans to produce in a specified period, based on forecasting.

Standard Cost System

A managerial accounting method where estimated costs are used for cost control and decision making.

Standard Cost Card

A document that details the expected costs associated with the production of a product, including direct materials, direct labor, and overhead costs, used for budgeting and variance analysis.