A Restrictive Short-Term Financial Policy Tends to

question 66

Multiple Choice

A restrictive short-term financial policy tends to

• A)grant credit to more customers.
• B)reduce total ordering costs as compared to a more flexible policy.
• C)encourage credit sales over cash sales.
• D)incur more carrying costs than a flexible policy does.
• E)reduce future sales more so than a flexible policy.

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Definitions:

ANOVA Table

A structured presentation of variance analysis that includes source, degrees of freedom, sum of squares, mean square, and F value.

Independent Variables

Variables in an experiment or statistical model that are manipulated or categorized to examine their effect on the dependent variables without being influenced by other variables in the study.

Factors

Variables that are manipulated or controlled in an experiment to determine their effect on an outcome.

Two Independent

Refers to having two variables in an experiment that are manipulated or changed independently of each other.