A Firm's Accounts Receivables Are $1,000,000;its Net Sales Are $16,000,000

question 40

Multiple Choice

A firm's accounts receivables are $1,000,000;its net sales are $16,000,000.Its collection period is _____ days.

• A)6
• B)23
• C)30
• D)67

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Definitions:

Variable Cost

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

Mud Statues

Sculptures made out of mud or clay, often used in various cultures for artistic or ceremonial purposes.

Workers

Individuals engaged in any form of economic activity to earn a living, including both paid and unpaid efforts.

Diseconomies of Scale

The phenomenon where, as a firm or industry grows beyond a certain point, per unit costs start increasing due to inefficiencies.