Which of the following is not considered a "cost" of financing credit sales?
A)The opportunity cost of lost interest.
B)Keeping the records for accounts receivable.
C)The increased sales resulting from the extension of credit.
D)The possibility of unpaid accounts.

Question

Quizplus · Accepted Answer

Increased sales resulting from the extension of credit are not considered a cost of financing credit sales. Rather, they are considered a benefit or a reason why a business may choose to offer credit to customers. The other options listed (lost interest, keeping records, unpaid accounts) are all costs that must be considered when financing credit sales.

Which of the Following Is Not Considered a "Cost" of Financing