Examples of credit-related marginal costs are all of the following EXCEP:
A) Advertising costs associated with promoting the company's credit policy.
B) Opportunity costs associated with supporting a higher level of receivables.
C) Labor costs associated with checking new credit accounts and collecting receivables.
D) Bad-debt expenses.

Question

Quizplus · Accepted Answer

Advertising costs associated with promoting the company's credit policy are not directly related to managing and maintaining the company's credit accounts and receivables, and are therefore not considered credit-related marginal costs. The other choices (B, C, and D) are all examples of credit-related marginal costs.

Examples of Credit-Related Marginal Costs Are All of the Following