Which one of the following mathematical definitions is correct?
A) The cost of switching credit policies is defined as the quantity multiplied by (P-v) .
B) The net present value of extending credit is equal to -v + (P- v) /R.
C) The total cost of holding inventory is equal to (Q) (CC) + (F) (T/Q) .
D) The economic order quantity is equal to the square root of (T) (F) /CC.
E) Accounts receivable is defined as average daily sales multiplied by the average collection period.
Correct Answer:
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