When sales are made on credit, the firm must carry the costs of production itself for an extended period.

Name: When sales are made on credit, the firm must carry the costs of production itself for an extended period.
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Question

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When a firm makes sales on credit, it means that the customers will pay at a later date, therefore, the firm must carry the costs of production itself until the payment is received.

When Sales Are Made on Credit, the Firm Must Carry