Answered: The goal of credit policy

Business

Finance

The goal of credit policy

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 1QTD

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Question

The goal of credit policy is to

Maximise sales

Minimise bad debt losses

Minimise collection expenses

Extend credit to the point where marginal profits equal marginal costs

Definition Definition Receivable amount that a company is owed, but did not receive, and which may not be receivable in future.

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