Receivables Are Classified As

question 53

Multiple Choice

Receivables are classified as:

• A)increases in earnings.
• B)decreases in earnings.
• C)liabilities.
• D)assets.

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Definitions:

Scale of Production

Refers to the level at which a manufacturing process operates, which can impact the efficiency and cost per unit of production.

Average Costs

The total costs (fixed and variable) divided by the total output, indicating the cost per unit of output produced.

Decreasing Returns to Scale

A situation in which, when the scale of production is increased, the output increases at a proportionally lower rate.

Minimum Efficient Scale

The smallest level of production a company can achieve while still taking full advantage of economies of scale in terms of costs per unit.