A Firm's Credit and Collection Policies Usually Include

question 41

Multiple Choice

A firm's credit and collection policies usually include

• A) terms of sale, quality of customers, and collection of credit sales.
• B) average collection period, dollar value of aged receivables, and terms of sale.
• C) terms of sale and collection of credit sales.
• D) terms of sale, level of credit sales, and collection of credit sales.

---

Definitions:

Arrival Rate

The rate at which something occurs or is repeated over a particular period of time.

Service Rate

The speed at which a service provider can complete a service or process an item, often measured in units per time period.

Simulation Results

The output or outcomes generated from running a computer-based model that represents a real-world system.

Process Simulation

The use of computer software to model the operation of an entire process or system to study its behavior and performance under different conditions.