The Days Sales Outstanding Tells Us How Long It Takes,on

question 63

True/False

The days sales outstanding tells us how long it takes,on average,to collect after a sale is made.The DSO can be compared with the firm's credit terms to get an idea of whether customers are paying on time.

---

Definitions:

Constant Costs

Expenses that do not change in proportion to the level of activity or production volume.

Change Costs

Change costs refer to the expenses associated with making modifications to a project, product, or system, including the costs for design changes, materials, and labor.

Management Approach

The management approach refers to the strategies and methods employed by a company's leadership to achieve its objectives and manage its resources.

Significant Differences

Notable or substantial variations between two or more items, figures, or outcomes.