What is the relationship between the opportunity cost of accounts receivable and the variable cost r

Calculate the average balance of accounts receivable (360 on credit) Average collection period Calculate the funds occupied to maintain the open account average balance of accounts receivable Variable cost ratio.

Calculate the opportunity cost of accounts receivable and maintain the capital cost ratio of funds occupied by credit sales.

Pls why multiply by the variable cost ratio.

Accounts receivable have the function of actively promoting sales and reducing inventory, and at the same time, there are corresponding costs. Its main contents include: opportunity cost, management cost, bad debt cost.

Accounts Receivable Cost - Opportunity Cost: Opportunity cost, i.e., other income lost due to funds invested in accounts receivable. The size of this cost is usually related to the amount of funds (i.e., the amount of accounts receivable investment) and the cost of capital ratio required by the enterprise to maintain the credit business.

The opportunity cost of accounts receivable can be calculated by the following formula: opportunity cost of accounts receivable = funds required for credit sales Capital cost rate funds required for credit sales business = average balance of accounts receivable Variable cost rate average balance of accounts receivable = average daily credit sales In the formula of average collection days, the average collection days are generally calculated based on the weighted average of all customers' collection days as the weight of the customer's respective credit sales in the total credit sales amount; The cost of capital rate can generally be calculated based on the rate** interest rate.

Accounts receivable is an important item of current assets of an enterprise, and it is also an asset investment of an enterprise, which is an investment made by an enterprise in order to expand sales and profits. The cost of its investment includes the cost of managing accounts receivable, opportunity cost, and bad debt cost. The opportunity cost of accounts receivable refers to the income that a business gives up on other investments due to the investment in accounts receivable.

If the company's funds are not invested in accounts receivable, they can be used for other investments and obtain income, such as investment in valuable **, there will be interest income. This other income that is abandoned due to the investment in accounts receivable is the opportunity cost of accounts receivable. This cost is usually calculated at the rate* of interest.

The opportunity cost of accounts receivable is closely related to the "accounts receivable occupied funds", and its relationship is: "accounts receivable opportunity cost - accounts receivable occupied funds return on investment (priced** interest rate)". It can be seen that the more funds occupied by accounts receivable, the higher the opportunity cost of accounts receivable; Conversely, the lower.

Accounts receivable. Opportunity cost is equal to the average occupied accounts receivable multiplied by the opportunity cost rate is equal to the average accounts receivable balance multiplied by the variable cost.

Multiply the rate by the opportunity cost rate.

The variable cost ratio is equal to the variable cost multiplied by the sales revenue multiplied by 100 and is equal to (the unit cost multiplied by the sales volume) divided by (the unit price multiplied by the sales volume) multiplied by 100 Deng Yi's unit variable cost divided by the unit price multiplied by 100.

Variable cost refers to the change of total cost with the change of business volume (output, operation volume or sales volume), mainly including: raw materials that directly constitute the product entity; wages, benefits, and social security for production workers; Electricity, fuel. Each enterprise can be determined according to its own production process, product characteristics, etc., in line with the actual cost of the enterprise.

There is a specific scope for accounts receivable. Accounts receivable refers to claims arising from sales activities or provision of services, excluding other receivables such as arrears owed by employees and interest receivable from debtors.

Accounts receivable refers to current assets.

nature claims, excluding long-term claims, such as the purchase of long-term bonds, etc.; Accounts receivable refers to the amount receivable from customers by the Company, excluding all types of deposit deposits paid by the Company, such as bid deposits.

and the deposit of rented packaging materials, etc. The reasons for the high accounts receivable of enterprises can be summarized from two aspects. On the one hand, due to the fierce competition in the market, enterprises in order to expand sales and increase the competitiveness of enterprises.

On the other hand, it is due to the problems of the enterprise itself. Subjectively, enterprise managers generally only focus on sales and ignore internal management including accounts receivable management, and objectively they lack experience and theory in accounts receivable management.

The variable cost rate, also known as the compensation rate, is the same as the marginal contribution rate.

The corresponding concept, i.e., the percentage of variable costs in sales revenue.

Since sales revenue is divided into two parts: variable cost and marginal contribution, the former is the consumption of the product itself, and the latter is the contribution to the enterprise, the sum of the two percentages should be 1.

How to calculate the opportunity cost:

1. The first method: calculated according to sales.

By the formula: accounts receivable occupied funds = daily sales average cash collection period.

Accounts receivable opportunity cost = accounts receivable occupied capital cost rate launched:

Accounts receivable opportunity cost = daily sales average cash period capital cost ratio.

2. The second method: calculated according to the variable cost of sales.

Accounts receivable opportunity cost:

Daily sales * variable cost ratio * average collection period * cost of funds ratio.

Accounts receivable occupied funds = daily sales * variable cost ratio * average collection period.

It is not possible to calculate the opportunity cost of accounts receivable if you do not know the variable cost of accounts receivable but know the gross profit margin of sales. The opportunity cost of accounts receivable is directly proportional to the variable cost ratio of accounts receivable. For example:

Sales of 24 million yuan, the average collection period of all accounts is 2 months, the gross profit of sales is 20%, the minimum rate of return required for accounts receivable investment is 15%, and the opportunity cost of accounts receivable is calculated. The calculation process is as follows: Opportunity cost of accounts receivable = 24000000 * 2 12 * 20% * variable cost ratio.

The formula is as follows: Calculate the average receivable balance (credit 360) for the average collection period.

Calculate the average balance of accounts receivable and variable cost ratio of funds occupied to maintain credit business.

Calculate the opportunity cost of accounts receivable and maintain the capital cost ratio of funds occupied by credit sales.

The opportunity cost of accounts receivable refers to the benefits of abandoning other investments as a result of investing in accounts receivable. Accounts receivable are calculated as follows: based on sales. Calculated based on the variable cost as a share of sales.

The opportunity cost of receivables refers to the benefits of abandoning other investments due to the investment in receivables. The goal of managing accounts receivable: to control the balance of accounts receivable under the condition of appropriately using credit sales to increase the market share of enterprise products.

Accelerate the turnover of accounts receivable.

How to calculate the opportunity cost:

a) The first method is calculated based on sales.

By the formula: accounts receivable occupied funds = daily sales average cash collection period.

Accounts receivable opportunity cost = accounts receivable occupied capital cost rate launched:

Accounts receivable opportunity cost = daily sales average cash period capital cost ratio.

ii) The second method is calculated based on the variable cost as a share of sales.

Accounts receivable opportunity cost:

Daily sales * variable cost ratio * average collection period * cost of funds ratio.

Accounts receivable occupied funds = daily sales * variable cost ratio * average collection period.

According to this method, changing credit conditions and affecting the change in the amount of funds occupied by accounts receivable is its variable cost.

3) Accounts receivable cost - opportunity cost.

Opportunity cost, i.e., other revenue lost as a result of funds invested in accounts receivable. The size of this cost is usually related to the amount of funds required by the enterprise to maintain the credit business (i.e., the amount of accounts receivable investment) and the capital cost ratio. The opportunity cost of accounts receivable can be calculated by the following formula:

Accounts receivable opportunity cost = capital required for credit sales business capital cost ratio.

Funds required for credit sales = average balance of accounts receivable Variable cost ratio.

Average balance of accounts receivable = average daily credit sales average number of days of collection.

In the formula, the average number of days of collection is generally calculated based on the weighted average of the number of days collected by all customers before the customer's sales amount before credit sales to the total credit sales amount. The cost of capital rate can generally be calculated based on the rate** interest rate.

Calculate the average receivable balance (credit 360) for the average collection period.

Calculate the average balance of accounts receivable and variable cost ratio of funds occupied to maintain credit business.

Calculate the opportunity cost of accounts receivable and maintain the capital cost ratio of funds occupied by credit sales.

This is the correct parsley.

Accounts Receivable Opportunity Cost Average Accounts Receivable Occupied, Opportunity Cost Rate, Average Accounts Receivable Balance, Variable Cost Rate, Opportunity Cost Rate.

Variable Cost Ratio Variable Cost Sales Revenue 100 (Unit Cost Sold Volume) (Unit Price Sales Volume) 100 Unit Variable Cost Unit Price 100