The Goal of Accounts Receivable Management Is to

question 63

Multiple Choice

The goal of accounts receivable management is to

• A) give credit to every customer.
• B) have a department of its own in a company.
• C) collect money as fast as possible.
• D) increase sales by offering credit to customers.

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Definitions:

Gain-Sharing Plan

A performance-driven compensation strategy where employees receive bonuses based on the company's savings or gains from improved productivity.

Labour Usage Ratios

Measures that compare the amount of labor used to the outputs achieved, helping businesses assess efficiency.

Financially Funded Plans

Employer-sponsored programs designed to provide employees with financial benefits, such as pension plans or health insurance, which are supported by the company's funds.

Organizational Profitability

The ability of an organization to generate more revenue than its expenses, leading to financial gain.