An Important Concern of Creditors When Evaluating Your Credit Application

question 4

True/False

An important concern of creditors when evaluating your credit application is how well you have used credit in the past.

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Definitions:

Flexible Budgets

A financial plan that adjusts to varying levels of operational activity or volume.

Fixed And Variable

Terms describing costs within a business; fixed costs do not change with the volume of production, while variable costs do.

Production Budget

A plan that outlines the number of units that need to be produced to meet sales demands and inventory requirements.

Master Budget

An integrated set of operating and financial budgets for a period of time.