New Credit Policies Have Been Implemented in an Automated Order-Entry

question 433

Multiple Choice

New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information provide:

• A) Feedback control data.
• B) Irrelevant and argumentative information.
• C) Evidence that the new credit policies do not meet the stated corporate objective to improve collections.
• D) A statistically valid conclusion about the impact of the new credit policies on customer goodwill.

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Definitions:

Company-wide Profits

The total earnings of a company after all expenses have been subtracted from revenues, reflecting the overall financial success across all departments.

Profit Centers

Parts of an organization that are treated as separate business units, with their expenses and revenues, to calculate their individual profitability.

Executive Oversight

The process by which executives monitor and control the operations and performance of an organization to ensure alignment with goals and objectives.

Division Revenues

The total income generated by a specific division or department within a company from its operational activities.