One Technique to Provide Better Control Over Credit and Collections

question 103

True/False

One technique to provide better control over credit and collections of receivables is to have those functions managed by the accounting department instead of the sales department.

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Definitions:

Market Price

The prevailing rate at which a product or service is available for purchase or sale in a market driven by competition.

Marginal Revenue

Marginal revenue is the additional income received from selling one more unit of a good or service.

Total Revenue

Total Revenue, in a rephrased definition, represents the aggregate earnings a company receives from selling its products or services, before any expenses are subtracted.

Market Price

The going rate at which a particular market offers to buy or sell an asset or service.