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Credit Policy
A set of guidelines that a company follows to determine credit terms for customers, which encompass payment period, amount of credit, and the discount terms.
Cash Discount
A reduced price offered by a seller for goods or services if the buyer pays in cash, or within a specified time period, encouraging early payment.
Receivables
Money that is owed to a company by its customers for goods or services provided on credit, represented as assets on the balance sheet.
Carrying Cost of Inventory
Expenses related to holding and maintaining unsold inventory, including storage, insurance, taxes, and opportunity costs.
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