Credit Scoring Systems Can Be Used To

question 17

Multiple Choice

Credit scoring systems can be used to:

• A)Reduce the effective cost of trade
• B)Determine the cost of goods sold
• C)Evaluate Dun & Bradstreet's reports
• D)Evaluate credit risk based on the borrower's characteristics

Understand the guidelines for drafting clear, logical instructions and claims in a business setting.

Understand the components and structure of the statement of cash flows.

Identify and differentiate between operating, investing, and financing activities.

Recognize the significance of noncash investing and financing activities.

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Definitions:

Variable Costs

Expenses that vary in relation to the amount of production or the scale of business operations.

Fixed Costs

Expenses such as rent, salaries, and insurance that remain constant regardless of the amount of production or sales.

Variable Cost

A cost that varies with the level of output or production volume.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.