How Do Entities Ensure That Customers Are Able to Honour

question 63

Multiple Choice

How do entities ensure that customers are able to honour credit sales?

• A)get them to fill in a credit-scoring questionnaire before extending credit
• B)have their directors give a personal guarantee for the amount owing
• C)limit the size of credit a customer can build up
• D)all of the options are true

Identify gender differences in psychological diagnoses.

Acknowledge the role of clinical interviews and behavioral assessments in personality assessment.

Evaluate the impact of social networking on the perception of others.

Understand the reliability and validity issues associated with projective tests.

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Definitions:

Total Costs

The sum of all expenses incurred in the production of goods or services, including direct and indirect costs, both variable and fixed.

Step-Down Method

A method of allocating costs whereby one service department’s cost is allocated to all remaining service departments and operating departments, and so on, until all service department costs are allocated to final products.

Death Spiral

A situation occurring when transfer prices include fixed costs and users reduce their use of the internal product or service. This further increases the transfer price (based on average cost) and more users reduce their demand.