Factoring Is an Option Available to a Business to Reduce

question 193

True/False

Factoring is an option available to a business to reduce the risk of uncollectible accounts receivable.

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Definitions:

Breakeven Point

The level of production or sales at which total costs equal total revenue, meaning no net loss or gain is incurred.

Fixed Costs

Costs that do not change with the number of sales made.

Variable Cost

Expenses that change in proportion to the activity or volume of business, such as materials and labor.

Right Price

The optimal price point for a product or service, taking into account factors such as value to the customer, demand, and competition.