Queen Co'S Balance in Accounts Receivable Is $240,000

question 117

Multiple Choice

Queen Co.'s balance in accounts receivable is $240,000. Annual credit sales are $2,880,000. Queen's average collection period is

• A) 12 days.
• B) 30.4 days.
• C) 2.5 days.
• D) There is not enough information.

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Definitions:

Direct Materials Price Variance

The difference between the actual cost and standard cost of materials used in production.

Direct Materials Quantity Variance

The difference between the actual quantity of direct materials used in production and the standard quantity expected, multiplied by the standard cost per unit.

Performance Evaluation System

A structured framework that systematically assesses and measures employee performance based on predefined criteria and objectives.

Bulk Purchase Discount

A reduction in price offered by suppliers to customers who buy large quantities of goods.