AVERAGE SETTLEMENT PERIOD Definition

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AVERAGE SETTLEMENT PERIOD is calculated: For Debtors = Trade Debtors X 365 days / Credit Sales
For Creditors = Trade Creditors X 365 days / Credit Purchases.

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OUTSTANDING is the amount owed as a debt, example: outstanding bills.

USAGE VARIANCE is the difference between the budgeted quantity of materials and the actual quantity used.

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