The Days' Sales in Receivables Indicates the Number of Days

question 45

True/False

The days' sales in receivables indicates the number of days it takes to collect the average level of accounts receivable.

---

Definitions:

Actual Costs

The real costs incurred in the production, acquisition, or realization of goods and services, as opposed to estimated or standard costs.

Direct Materials Price Variances

The difference between the actual cost of direct materials and the standard cost, used to measure cost management efficiency.

Quantity Variances

Differences between the expected and the actual amount of materials, labor, or overhead used in production.

Standard Costs

Predetermined costs to manufacture a single unit or a number of units of a product during a specific period.