Companies are concerned about the cost of extending credit for all the following reasons except:
A)the time delay in receiving payment.
B)the expense of the extra goods that must be produced or bought.
C)the risk of nonpayment.
D)the administrative costs associated with extending credit.

Question

Quizplus · Accepted Answer

The expense of extra goods that must be produced or bought is not directly related to the cost of extending credit. Extending credit primarily involves concerns about delayed payments, risk of nonpayment, and administrative costs.

Companies Are Concerned About the Cost of Extending Credit for All