The Optimal Credit Amount Is Determined By

question 28

Multiple Choice

The optimal credit amount is determined by:

• A) the point which minimizes the total credit cost curve.
• B) the point which maximizes the carrying costs associated with granting credit.
• C) the point which maximizes opportunity costs associated with granting credit.
• D) the point where the additional net cash flow from new customers equals the additional carrying costs of the investment in receivables.
• E) Both the point which minimizes the total credit cost curve; and the point where the additional net cash flow from new customers equals the additional carrying costs of the investment in receivables.

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