When an Accounts Payable Department Improves Their Information System Resulting

question 3

Multiple Choice

When an Accounts Payable department improves their information system resulting in faster payments to vendors, without the Accounts Receivable Department doing the same, leading to a cash flow crunch, what can we say happened in decision-theoretic terms?

• A) optimization
• B) profit minimization
• C) suboptimization
• D) cash flow problems