Back2Work Is Considering Replacing the Receptionist Who Answers the Phone

question 75

Multiple Choice

Back2Work is considering replacing the receptionist who answers the phone with an automated answering system. Back2Work should ________ to reduce resistance to this change.

• A) negotiate with the current receptionist
• B) tell the current receptionist she is being reassigned
• C) involve the current receptionist in the decision process
• D) explain the benefits of this change to the current receptionist.

Understand how accounts receivable management theories support credit decisions.

Evaluate credit terms and discounts and their financial implications.

Analyze the risk and return of extending credit to new and existing customers.

Identify the carrying costs associated with granting credit.

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Definitions:

Net Price Method

The net price method calculates the final price after all discounts, rebates, and allowances have been subtracted from the list price.

Catalog Price

The price listed in a catalog, not accounting for any discounts or promotions.

Credit Terms

Credit Terms are the payment terms and conditions established by a seller, including the period that has to pass before an invoice is considered overdue.

Cost Of Goods Sold

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