Farron Corporation, Which Has Only One Product, Has Provided the Following

question 125

Multiple Choice

Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the unit product cost for the month under variable costing?

• A)$69 per unit
• B)$84 per unit
• C)$89 per unit
• D)$74 per unit

---

Definitions:

Accounts Receivable Turnover Ratio

A financial metric assessing how efficiently a company collects its receivables, calculated as net credit sales divided by average accounts receivable.

Accounts Receivable Turnover Ratio

A financial ratio indicating how efficiently a company collects on owed credit sales over a period.

Average Collection Period

This term refers to the average number of days it takes for a business to receive payments from its customers for invoices issued.

Accounts Receivable Turnover Ratio

A financial metric indicating how many times a company collects its average accounts receivable within a certain period.