Factoring Accounts Receivable, Unlike Pledging Accounts Receivable, Typically Passes the Risk

question 70

True/False

Factoring accounts receivable, unlike pledging accounts receivable, typically passes the risk of loss on the receivable to the buyer.

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Definitions:

Quantity Standard

A specific measure established to gauge the expected or optimal quantity of input required to produce a unit of output.

Price Standard

A pre-determined cost per unit of input or output, used for setting budgets and measuring performance.

Variable Overhead Efficiency Variance

Variable overhead efficiency variance is a metric used to measure the difference between the expected (standard) and actual use of variable overhead resources in production.

Standard Machine-Hours

A predetermined measure of how much machine time is expected for a task, used in cost accounting.