Extending Credit to Customers Will Not Result in Which of the Following

question 100

Multiple Choice

Extending credit to customers will not result in which of the following additional costs?

• A)Increased wage costs will be incurred to evaluate customer creditworthiness,track what each customer owes,and follow up to ensure collection.
• B)Bad debt expense will result when amounts cannot be collected from customers.
• C)Delayed receipt of cash may result in requiring the company to take out short-term loans and incur interest costs.
• D)Decreased gross profit from reduced sales.

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Definitions:

Subordinates

Individuals or groups who are lower in rank, position, or authority within a hierarchy.

Direction

Can refer to guidance or supervision towards achieving a goal or to the specific path that something or someone moves or is aimed toward.

Bureaucracy

A system of administration characterized by strict policies, procedures, and hierarchy, typically within governments or large organizations.

Salaried Staff

Employees who are paid a fixed amount by their employers, regardless of the hours worked, typically on an annual basis.