In Relation to Selecting Customers in a Circularisation of Receivables

question 27

Essay

In relation to selecting customers in a circularisation of receivables:
(i) explain how you would use monetary unit sampling to select the customers to
circularise
(ii) consider the criteria you would use to select individual customers for circularisation
using judgement
(iii) discuss the advantages and disadvantages of using monetary unit sampling (in (i)
above) as compared with judgement (in (ii) above) to select the customers to circularise. Your answer should consider the reasons why it is undesirable only to use judgement to select the customers for circularisation.

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Definitions:

Stealth Marketing

A marketing strategy that advertises a product to people without them realizing they are being marketed to.

Illegal

Activities or actions that are forbidden by law or legislation.

Diversity

Diversity refers to the inclusion and representation of differences in identity, perspectives, and backgrounds, including race, gender, age, and more, within a group or organization.

Cultural Context

The set of social, historical, and environmental factors and conditions that influence the understanding and interpretation of messages, behaviors, and symbols within a particular culture.