Variable Costs That Are Proxies for Long-Term Costs Should Be

question 91

True/False

Variable costs that are proxies for long-term costs should be used to measure profitability.

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Definitions:

Account Payable

The sum of funds that a business needs to pay back to its vendors or lenders for products or services bought on a credit basis.

Account Receivable

Debts owed by customers to a company for items or services that have been dispatched but not compensated.

Asset

Assets held by a company or person anticipated to yield economic advantages in the future.

Expense Payable

Obligations or liabilities to pay for goods or services received but not yet paid for.