The Collection Period Is Affected by _____

question 54

Multiple Choice

The collection period is affected by _____.

• A)inventory turnover
• B)whether domestic or imported merchandise is sold
• C)vendor terms
• D)normal selling terms to consumers

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Definitions:

Variable Costs

Expenses that change in proportion to the level of production or sales activity, such as raw materials and direct labor.

Break-even Sales

The amount of revenue needed to cover total costs, resulting in neither profit nor loss.

Variable Costs

Costs that vary in proportion to the level of activity or volume of production in a business.

Break-even Point

The break-even point is the point at which total costs and total revenues are equal, meaning the business is neither making a profit nor a loss.