A company enters into an agreement with a firm that will factor the company’s accounts receivable. The factor agrees to buy the company’s receivables, which average $100,000 per month and have an average collection period of 30 days. The factor will advance up to 80% of the face value of receivables at an annual rate of 10% and charge a fee of 2% on all receivables purchased. The controller of the company estimates that the company would save $18,000 in collection expenses over the year. Fees and interest are not deducted in advance. Assuming a 360-day year, what is the annual cost of financing? 

Just-in-time production is also called 

A manufacturing company produces plastic utensils for a particular segment at the lowest possible cost. The company is pursuing a cost? 

If inventories are expected to change, the type of costing that provides the best information for breakeven analysis is