Which of the Following Is Not a Reason for Having

question 13

Multiple Choice

Which of the following is not a reason for having machines and equipment in good operating condition?

• A)lower the production processing
• B)no added service or production costs
• C)maintain high quality
• D)avoid missed delivery dates
• E)avoid production or service disruptions

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Definitions:

Collection Policy

The set of guidelines a company uses to monitor and manage the collection of accounts receivable or owed debts.

Receivables Policy

A set of guidelines a company follows to manage its accounts receivable, including credit terms, collection methods, and credit limits.

Credit-Granting Policy

A set of guidelines that a lender uses to determine whether to extend credit to borrowers and on what terms.

Credit Policy Effects

The impact of a company's credit policy on its cash flows, sales volume, and overall financial health, including aspects like credit terms and collection practices.