Since it makes little difference in collections and since it saves substantial payroll costs, hotel managers should eliminate the traditional 3-day billing period in favor of the more customary 30-day period.

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The statement contains a flawed assumption that a 30-day billing period is more customary than a 3-day period for hotels, which is not typically the case. Hotels usually prefer shorter billing cycles to improve cash flow and reduce credit risk.

Since It Makes Little Difference in Collections and Since It