What Is the Term Used for Doubtful or Disputed Accounts,which

question 1

Multiple Choice

What is the term used for doubtful or disputed accounts,which are partly or totally uncollectible?

• A) Bad debts
• B) Valuation allowance
• C) Provision expense
• D) Debtor accounts

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Definitions:

Absorption Costing

An approach to accounting that integrates all costs associated with manufacturing - including direct materials, direct labor, and overhead costs, no matter if they are variable or fixed, into the final cost of a product.

Variable Costing

A bookkeeping technique that incorporates only variable production expenses, such as direct materials, direct labor, and variable manufacturing costs, into the cost of products, while omitting fixed overhead.

Manufacturing Company

A company engaged in the conversion of raw materials into finished goods on a large scale, using labor, machines, and chemicals processes.

Contribution Margin

The difference between sales revenue and variable costs of goods sold, indicating the amount available to cover fixed costs and generate profit.