A Company's Number of Days to Collect Is Higher Than

question 70

Multiple Choice

A company's number of days to collect is higher than the length of credit period.Analysts might conclude:

• A)customers are dissatisfied with the product or service they bought.
• B)the company is effectively managing its receivables.
• C)the company has begun estimating the amount of uncollectibles using percentage of net sales rather than aging the receivables.
• D)the company's payment terms have been tightened and customers are paying within the payment period granted.

Understand the positive role of customer complaints in improving service.

Recognize the distinction between personal attacks and constructive feedback.

Identify strategies for handling impossible customer requests effectively.

Appreciate the role of feedback in improving business operations.

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Definitions:

Qualitative Variables

Variables that express descriptive, non-numerical qualities or categories.

Indicator Variables

Indicator variables, also known as dummy variables, are numeric variables used in statistical models to represent categorical data, with values typically 0 or 1 indicating the absence or presence of a characteristic.

Regression Model

A regression model is a statistical approach used to describe the relationship between a dependent variable and one or more independent variables.

Multiple Regression

A statistical technique that models the relationship between a dependent variable and two or more independent variables.