The Term Product Class Refers to

question 276

Multiple Choice

The term product class refers to

• A)the NAICS designation of an individual product or brand.
• B)the designation of an individual product based upon its form.
• C)a variation of a product within a product mix.
• D)the designation of a product based on whether it is a consumer product or business product.
• E)the entire product category or industry a set of offerings belong to.

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Definitions:

Selling Receivables

The process of selling a company's outstanding invoices to a third party to improve cash flow and reduce risk.

Risk

The possibility of experiencing loss or other adverse effects in business or investment.

Allowance Method

An accounting technique to estimate and record bad debts by recognizing a provision for accounts receivable that might not be collected.

Bad Debt Expense

An expense recorded by businesses to reflect irrecoverable amounts owed by customers, considered an unavoidable cost of extending credit.