What Is the Effective Annual Rate of Trade Credit If

question 113

Multiple Choice

What is the effective annual rate of trade credit if the trade credit terms are 1/10,net 30?

• A) 13.01%
• B) 18.00%
• C) 18.43%
• D) 20.13%

---

Definitions:

Master Production Schedule

A detailed plan that outlines what is to be produced, how much, and when, guiding manufacturing operations.

Subassemblies

Parts that are assembled separately but designed to be used as part of a larger assembly.

Final Products

The completed goods ready for sale or distribution after undergoing all stages of the manufacturing process.

Master Production Schedule

A detailed plan that outlines what a manufacturing facility will produce, in what quantities, and when, to meet anticipated demand.