Which of the Following Types of Sales Credit Does Not

question 26

Multiple Choice

Which of the following types of sales credit does not offer the potential of no-finance charge?

• A) Thirty-day, or regular charge accounts
• B) Revolving and optimal charge accounts
• C) Installment purchases or time payment plans
• D) All of the above offer potential of no finance charge
• E) None of the above offer potential of no finance charge

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Definitions:

Fixed Cost

An expense that does not change with the level of production or sales over a short period.

Sales Commissions

The payment given to sales employees based on the amount of sales they generate, typically a percentage of the sale price.

Sales Volume

The amount of goods or services a company sells over a certain time frame.

Variable Costs

Costs that vary directly with the level of output or production, such as materials and labor directly involved in manufacturing.