A Company's Information System Discovers a Customer's Poor Credit History

question 27

Multiple Choice

A company's information system discovers a customer's poor credit history only after certain goods have been shipped to him. The information produced, as a result, was not useful because the data was ________.

• A) inaccurate
• B) too fine-grained
• C) too coarse-grained
• D) ill-timed

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of goods sold in a company, including materials and labor.

Merchandise Inventory

The total value of all merchandise that a retailer, wholesaler, or distributor has on hand that is available for sale.

Cash Balance

The amount of cash held by a company at a given moment, reflecting its immediate liquidity.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company; this amount includes the cost of the materials and labor directly used to create the product.