What Is a Typical Procedure for Processing Sales Orders from New

question 44

Multiple Choice

What is a typical procedure for processing sales orders from new customers or customers making a purchase that causes their credit limit to be exceeded?

• A)General authorization to approve the order is given to sales clerks.
• B)Specific authorization must be granted by the credit manager.
• C)The sale should be rejected.
• D)The sales clerk should order a report from a credit bureau before approving the order.

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Definitions:

Price Ceilings

An imposed limit on the price charged for a product or service, often set by government regulation to protect consumers from excessively high prices.

Market Intervention

Market intervention is the action taken by a government or a regulatory authority to affect the market for a particular good or service, typically to correct market failures.

Price Floor

A government- or authority-imposed price control or limit on how low a price can be charged for a product, service, or commodity.

Quantity Supplied

The supply of a product or service that vendors are willing and capable of providing at a specific price during a definite period.