A Firm Has Forecasted Sales of $3,000 in April,$4,500 in May,and

question 93

Multiple Choice

A firm has forecasted sales of $3,000 in April,$4,500 in May,and $12,000 in June.All sales are on credit.30% is collected the month of sale and the remainder the following month.What will be the balance in accounts receivable at the end of June?

• A) $1,950
• B) $6,500
• C) $8,400
• D) $5,100

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Definitions:

Unproductive

Pertaining to activities or processes that do not generate any significant value, output, or growth, often resulting in inefficiency or waste.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on what the seller believes each customer will pay.

Oligopolistic Pricing

A pricing strategy adopted by companies in an oligopoly, where a few firms dominate the market and prices are often influenced by the actions of competitors.

Monopolistic Pricing

This refers to the practice by a monopolist to set prices higher than in competitive markets because they control a large portion of the market for a particular good or service.