A Very Important Cost of Paying an Invoice Late Which

question 15

Multiple Choice

A very important cost of paying an invoice late which is difficult to estimate accurately is:

• A)interest charges assessed by the supplier
• B)the cost of foregone interest revenue
• C)lost supplier goodwill
• D)the cost of foregone interest expense
• E)none of the above

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Definitions:

Long-Run Aggregate Supply

The total amount of goods and services produced in an economy at full employment, unaffected by price levels in the long term.

Nominal Wage

The wage that is paid to workers in current dollars, without adjustment for inflation.

Capital Stock

The total amount of physical, human, and intellectual capital that a country possesses at any given time.

Beneficial Supply Shock

An unexpected event that increases the production capacity and decreases the prices of goods and services.