The Point at Which the Incremental Cost of Investing in Accounts

question 278

Multiple Choice

The point at which the incremental cost of investing in accounts receivables is just offset by the cash inflows created by the incremental sales is the point at which the firm has achieved the optimal:

• A) Selling price per unit.
• B) Allocation of fixed costs.
• C) Net profit per unit.
• D) Level of inventory.
• E) Credit policy.

---

Definitions:

Blocking

In communication, blocking refers to actions or strategies that interrupt or prevent dialogue or the exchange of ideas.

Withdrawing

The act of pulling back or removing oneself from participation or consideration in a situation.

Prevention Strategy

An approach aimed at stopping problems or adverse outcomes before they happen.

Suggest A Process

Propose a specific method or sequence of steps to achieve a particular outcome or resolve a problem.