When selling on account,companies incur costs such as

Question

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When selling on account, companies must have a credit-granting function in place to assess the creditworthiness of their customers. This function requires trained employees who are paid wages, which is a cost to the company. Rent expense (B) is not directly related to selling on account, and bad debt revenue (C) and sales discounts (D) are not costs incurred by the company, but rather reductions in revenue.

When Selling on Account,companies Incur Costs Such as