List at Least Three Disadvantages of Using Credit

question 75

Essay

List at least three disadvantages of using credit.

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Definitions:

Standard Costs

Predetermined costs for the production of goods or services, used as benchmarks against which actual costs are compared.

Normal Conditions

Usual or expected conditions under which a company operates, reflecting a standard or average level of activity.

Variable Budget

A budget that adjusts in response to changes in activity levels or other factors, as opposed to a fixed budget.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate forecasting and analysis.