Which of the Following Statements Is False

question 143

Multiple Choice

Which of the following statements is false?

• A) In addition to sales price,product quality,and advertising,credit policy is a major controllable variable which can affect product demand.
• B) Sharp seasonal swings in sales and fast growth are two reasons why a firm's aging schedule and DSO may show high variability.
• C) Changes in a firm's collection policy can affect sales and working capital but will not affect additional funds needed.
• D) Cash discounts can be used to influence a firm's sales volume and its DSO.
• E) Firms which offer credit terms with a cash discount usually seek two benefits: (1)to attract more customers,and (2)to reduce their DSO.

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Definitions:

Real-Time Environment

A setting or system in which information is received and processed instantaneously or with minimal delay.

Minor Changes

Small adjustments or modifications that are made to improve or correct a situation without significant overhaul.

MRP System

Material Requirements Planning, a computer-based inventory management system designed to assist in production and inventory planning.