Receivables, Cost Accounting

In most situations this will be essential to grant credit to customers. It may be essential either due to competition or because of the custom of trade. Though, when we grant credit to customers this implies that we have to finance the cost of materials for the duration of that credit. Conversely, you are financing your customers' business to the extent of the credit granted. When the business is expanding, the volume of receivables will also expand. Please notice that the requirement for financing receivable is not to the full extent of the accounts receivables as sales. You are in reality financing only to the extent of cost of goods sold out of the receivables as sales in question.

Posted Date: 4/9/2013 1:35:58 AM | Location : United States







Related Discussions:- Receivables, Assignment Help, Ask Question on Receivables, Get Answer, Expert's Help, Receivables Discussions

Write discussion on Receivables
Your posts are moderated
Related Questions
how to prepare separate accounts for each process given having been givent normal loss,output,overhead and output passes to next process

In early July, Mike Gottfried purchased a $70 ticket to the December 15 game of the Chicago Titans. (The Titans belong to the Midwest Football League and play their games outdoors

The Cutting Department of the Rock Island Custom Cabinetry Corporation (a process costing production) had no work in process at the beginning of the period, 12,000 units were compl

ADVANTAGES OF STANDARD COSTING 1.     It offers a yardstick for measurement of performance. 2.     It helps 'Management by Exception'. 3.     It allows the management to

Me ole cock spaniel plc. makes 3 products, details as follows:   Apples (£)       Pears (£)         Cockneys (£)   Selling price        60               80

The activity driver for the shipping activity is the number of orders shipped. Product A uses 20 orders and Product B uses 60 orders. Calculate the consumption ratios for each prod

Rayya Co. purchases and installs a machine on January 1, 2013, at a total cost of $105,000. Straight-line depreciation is taken each year for four years assuming a seven-year life

Budgeted direct labour cost 75000 hours @ $16 per hour Budgeted manufacturing overhead 80 000 hours @ $17.50 per hour Actual direct labour cost $997 500 Budgeted manufa

Typical Causes of Material Variances Price Variances a) Paying lower or higher prices than planned. b) Losing or gaining quantity discounts via buying in large

Period Costs Some terms are difficult to define. In one school of thought, period costs are the any costs that are not product costs. But, such a description is a stretch, beca