A Manager at a Local Home Improvement Store Is Considering

question 126

Multiple Choice

A manager at a local home improvement store is considering the following costs.Which of the following is a cost controllable by the manager?

• A) Salaries of public relations staff at corporate headquarters
• B) Salaries of attorneys at corporate headquarters
• C) Salary of treasurer of company
• D) Salary of head cashier

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Definitions:

Short-Term Note Payable

A debt obligation due within one year or within the normal operating cycle of the business, used to finance short-term financing needs.

Receivables Turnover Ratio

A financial metric used to assess how efficiently a company collects cash from its credit sales by dividing total credit sales by the average accounts receivable.

Payments Quickly

Payments quickly refers to the process of settling financial transactions or obligations in a brief period of time, enhancing liquidity and cash flow management.

Average Collection Period

The average number of days it takes for a company to receive payments from its credit customers.