The benefits derived from reduced mail and processing floats must be greater than the bank fees associated with a lockbox system or else a firm would be better off without the lockbox.

Question

Quizplus · Accepted Answer

The statement is suggesting that the cost-benefit analysis of using a lockbox system should result in greater benefits (from reduced mail and processing floats) than the cost of paying bank fees for the service. Therefore, if this condition is not met, it would not be beneficial for a firm to use a lockbox.

The Benefits Derived from Reduced Mail and Processing Floats Must