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
WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

how does idle capacity effect cost behavior patterns and factory overhead application methods

Co-ownership incentive scheme or Profit Sharing Schemes The organization permits for ownership whereby the employees are permitted to own a percentage of the shares in the fir

It is the year 2012. The Chief Executive of XYZ Systems Plc, a growing firm in the telecommunication sector, has called your team for an important meeting. "We are expanding": he s

Alameda Service center just purchased an automobile hoist for $ 14000. The hoist has a 6 year lifeand an estimated salvage value of $1481. Installation costs were $3020, and freigh

preparation of costsheet

Bull Bay Ltd. Manufacturers two types of surfboard, "Winner" and "Surf King", whose selling prices are $300 and $900 respectively. Each surfboard passes through two manufacturing d

The following information relates to Araceli Manufacturing Company: total estimated manufacturing overhead cost at beginning of year $864,000 predetermined overhead rate (based

The following information pertains to Tudor Logistics Company: 200X Information: Sales                                      $4,875,000 Selling expense

HOW APPLICABLE IS THE MARGINAL COSTING CONCEPT IN ACCOUNTING