Which One of the Following Statements Is Correct in Regards

question 15

Multiple Choice

Which one of the following statements is correct in regards to credit periods?

• A)Perishable items tend to have longer credit periods.
• B)Items with low markups tend to have longer credit periods.
• C)Smaller accounts tend to have longer credit periods.
• D)Different customers may be offered different credit periods by the same firm.
• E)Newer products tend to have shorter credit periods.

---

Definitions:

Net Operating Income

The profit realized from a business's operations after subtracting operating expenses from operating revenues.

Break-even

The point at which total revenues equal total costs, resulting in no net profit or loss for the business.

Divisional Segment Margin

The amount of profit or loss generated by a specific division or segment of a company, often used to assess the segment's financial performance.

Common Fixed Expenses

Expenses that do not change in total amount with changes in the volume of production or sales, such as rent, salaries, and insurance.