Accounts Payable Is a Spontaneous Source of Funds Which Grows

question 8

True/False

Accounts payable is a spontaneous source of funds which grows as the business expands.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Cost Center

A department or unit within an organization to which costs can be allocated, but that does not directly generate revenue.

Performance Evaluation

The systematic process of assessing and reviewing an employee’s job performance and productivity in relation to established criteria and objectives.

Excess Capacity

The situation in which a company can produce more goods or services than currently demanded due to available resources exceeding production requirements.