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

Question

Quizplus · Accepted Answer

The disadvantages of selling on credit are increased wage costs,bad debt costs,and delayed receipt of cash.The cost of extra goods that must be produced or purchased for resale is not a concern related to extending credit.

Companies Are Concerned About the Cost of Extending Credit for All