Coyote Valley Products Has Daily Cash Collections of $500,000

question 13

Multiple Choice

Coyote Valley Products has daily cash collections of $500,000. The cash management staff has determined (1) customers' payments are in the mail an average of 3 days; (2) processing after receipt averages 1 day; and (3) after deposit funds are cleared on average in 2 days. Assume a 365 day year.
-What would be the benefit of a lock-box system that reduced mail float by 1.5 days,eliminated processing float,and reduced clearing float by 1 day,if Coyote Valley Products faces a 9% opportunity cost of funds?

• A) $112,500
• B) $157,500
• C) $180,000
• D) $67,500

Understand the distinction between different research designs, such as experimental, quasi-experimental, and correlational studies.

Grasp the concept of causation vs. correlation, including the ability to identify when a causal relationship can or cannot be inferred.

Recognize the importance and role of control groups in experimental research.

Identify the components required in an experimental design, including independent and dependent variables.

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Definitions:

Buying Process

The series of steps a consumer goes through before purchasing a product or service, from recognizing a need to making the purchase decision.

Buying Center

A group of individuals within an organization who are involved in the process of evaluating and making purchase decisions.

Buying Center

A collection of people in an organization involved in the process of deciding to buy products or services.

Organizational Culture

The set of shared values, beliefs, practices, and norms that characterizes an organization and influences its functioning.