Receivables, Cost Accounting

Assignment Help:

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.


Related Discussions:- Receivables

Which of the floowing is not capital budgeting decision, 1. when using the ...

1. when using the internal rate of return method to evaluate capital spending on a new project, the project will be accepted if the internal rate of return is equal to or greater t

Determine firms short run cost curve, Q. A firm uses capital and labor to p...

Q. A firm uses capital and labor to produce a single output good. The production function is given by F(K, L) = K 2 L where K is the amount of capital and L is the amount of labo

Specific order costing, Specific Order Costing This is a broad costing...

Specific Order Costing This is a broad costing system that is applicable where work jobs consist of separate jobs, batches or contracts.  Every job or contract or batch is a c

Business process re-engineering help to improve the profits, MLC, which was...

MLC, which was established in year 1998, manufactures a range of garden sheds and summerhouses using timber purchased from a various suppliers.The recently appointed managing direc

Prepare cash budget of a company, Prepare Cash Budget of a Company The...

Prepare Cash Budget of a Company The given information concerned to the proposed budget for a company for the months ending on 31 December 1996. Additional Information

Planning, what is planning and what part of this activity would you describ...

what is planning and what part of this activity would you describe as planning in the situasion above

Calculate the payback period and the accounting rate, Freshly Ground Invest...

Freshly Ground Investments have just made an investment of $550 000 in a new Toyota Hilux (with trailer) delivery vehicle. This vehicle will be used for deliveries and generate rev

Typical causes of material variances, Typical Causes of Material Va...

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

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