If a Company Did Not Extend Credit to Customers

question 74

Multiple Choice

If a company did not extend credit to customers:

• A)its gross revenue would rise.
• B)its costs of credit would rise but so would its revenue.
• C)its costs of credit would fall but so would its revenue.
• D)gross profit would rise.

Identify Mintzberg's managerial roles and provide examples.

Assess the influence of cultural differences on behavioral requirements for goal accomplishment.

Understand the role of intuition in managerial decision-making.

Recognize the impact of diversity and corporate social responsibility on organizational practices.

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Definitions:

Physical Units

A measure of production output or inventory in terms of the actual number of units, as opposed to the cost or value of the units.

Percentage of Completion

A method of accounting for long-term contracts in which income is recognized as a proportion of work completed at certain stages.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units they represent.

Conversion Costs

Costs incurred by a company in the process of converting raw materials into finished goods, typically including labor and overhead.