Factoring Is the Sale of Payables to a Third Party

question 44

True/False

Factoring is the sale of payables to a third party at a discount to their face value.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and salaries of indirect labor, not directly tied to the production of goods.

Sales Dollars

The total revenue generated from the sale of goods or services before any expenses are subtracted.

Performance

The act of carrying out or accomplishing tasks, goals, or objectives, often measured against known standards or objectives.

Salespersons

Individuals employed to sell products or services to customers, often working on commission and responsible for meeting sales targets.