The total cost of granting credit has two components. ________ are the costs of lost sales incurred when credit is not granted and are inversely related to the amount of credit extended. ________
Are the cash flows that are incurred when credit is granted and are positively related to the amount
Of credit extended.
A) Stockout costs; Opportunity costs.
B) Carrying costs; Opportunity costs.
C) Opportunity costs; Interest costs.
D) Opportunity costs; Carrying costs.
E) Sales costs; Carrying costs.
Correct Answer:
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