When a company measures its marginal costs and marginal returns, it is developing a(n) ____.
A) target capital structure
B) optimal credit extension policy
C) required rate of return
D) financing decision

Question

Quizplus · Accepted Answer

When a company measures its marginal costs and marginal returns, it is essentially evaluating the costs and benefits of extending additional credit to customers, which is part of developing an optimal credit extension policy. This process involves analyzing how extending credit affects sales, costs, and ultimately, profitability.

When a Company Measures Its Marginal Costs and Marginal Returns