A Restrictive Short-Term Financial Policy Tends To

question 97

Multiple Choice

A restrictive short-term financial policy tends to:

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

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Definitions:

Operational Improvements

Enhancements or optimizations made to the processes and procedures of an organization to increase efficacy, efficiency, and overall performance.

Transportation Costs

Expenses incurred in moving goods from one location to another, including freight charges, fuel costs, and maintenance.

Total Costs

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Fuel Costs

Expenses incurred from the consumption of fuel, significant in operations involving transportation and machinery.