Which of the Following Statements Is FALSE

question 35

Multiple Choice

Which of the following statements is FALSE?

• A)The lower the discount percentage offered,the greater the cost of forgoing the discount and using trade credit.
• B)A firm should choose to borrow using accounts payable only if trade credit is the cheapest source of funding.
• C)A firm should always pay on the latest day allowed.
• D)A firm should strive to keep its money working for it as long as possible without developing a bad relationship with its suppliers or engaging in unethical practices.

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Definitions:

P Chart

A type of control chart used for monitoring the proportion of defective items in a sample over time in quality control processes.

Sample Proportion

The fraction or percentage of the sample that has a particular trait or characteristic of interest.

Control Limits

Statistical boundaries in process control that indicate the acceptable range of process variation.

Centerline

The midpoint value in a control chart that represents the average performance of the process being studied.