Full service non recourse, Managerial Accounting

Assignment Help:

Full Service Non Recourse: in this method the book debts are purchased through the factor assuming 100 percent credit risk. In case of default through the debtor the whole risk is borne through the factor. Moreover to this the factor may also advance 80 to 90% of the books debts instantly to the client. Payments are made straight to the factor through the customers. The factor also keeps the accounts and sales ledger and prepares according to the age reports of good book debts. These kind of factoring services are particularly suited to the subsequent conditions as:

a) Amounts concerned per customer are relatively substantial

b) There are large numbers of customers of whom the client cannot have personal knowledge

c) Clients need to have 100 percent cover rather than 70 to 80% cover provided via the insurance companies.


Related Discussions:- Full service non recourse

Explain the scope of cost accounting, Explain the Scope of cost accounting ...

Explain the Scope of cost accounting Scope of cost accounting: the scope of cost accounting is very wide and includes the following: 1 cost ascertainment: it deals with t

Determine the profitability ratios in relation to investment, Determine the...

Determine the Profitability ratios in relation to investment a) Return on capital employed/ return on investment b) Return on equity or return on equity share holders' funds

Linear Programming, Explain with examples five areas where linear programmi...

Explain with examples five areas where linear programming can be applied in Managerial accounting

Advantages and limitations of game theory, Advantages and limitations of ga...

Advantages and limitations of game theory Advantage: Game theory helps us to learn how to approach and understand a conflict situation and to improve the decision maki

What is performance budgeting, What is performance budgeting The conce...

What is performance budgeting The concept of performance budgeting is used mainly in the government and public sector undertakings. It projects the government activities an

Inventory control decisions, INVENTORY CONTROL DECISIONS Factories, wor...

INVENTORY CONTROL DECISIONS Factories, workshops, engineering departments handle raw materials used in the manufacture of products. The main objectives in handling these materi

Job costing, Manufacturing cost data for Sassafras Company, which uses a jo...

Manufacturing cost data for Sassafras Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufa

Decision making environment-risk seeking-neutral-averse, Risk seeking:  ...

Risk seeking:  A risk seeker is a decision maker who is concerned in the best likely outcome no matter how small the chance that they might take place i.e. he takes high risks

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd