Which One of the Following Statements Is Correct Concerning a Factor

question 10

Multiple Choice

Which one of the following statements is correct concerning a factor that influences the length of the credit period?

• A) Perishable items tend to have longer credit periods.
• B) Items with low markups tend to have longer credit periods.
• C) Smaller accounts tend to have longer credit periods.
• D) One firm may offer different credit terms to different customers.
• E) Newer products tend to have shorter credit periods.

---

Definitions:

Tech Support Department

A division of a company providing technical support and services to customers or internal users regarding technological products or services.

Unused Capacity

The available production or service ability that goes unused or is not utilized to its full potential.

Number of Employees

The total count of individuals employed by a business, including part-time and full-time staff.

Time-Driven Activity-Based Costing

An approach to activity-based costing that assigns resource costs directly to products or services based on the precise time those activities use.