A Company's Pricing Policy Objectives May Include Maintaining a Minimum

question 90

True/False

A company's pricing policy objectives may include maintaining a minimum rate of return on investment.

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Definitions:

Collection Period

The standard timeframe for a corporation to collect receivables from its clientele.

Receivables Period

is the average number of days it takes for a business to collect payments from its customers after a sale has been made, indicating the efficiency of its credit and collection policies.

Credit Sales

Transactions where the customer buys goods or services on account, paying the supplier at a later date.

COGS

The specific costs tied to manufacturing goods that a business sells.