Which of the following assumptions is made when declaring that the break-even probability of collection is lower for customers with repeat orders?
A) The discount rate is fairly high.
B) The cost of the item will continually decline.
C) The sales price of the item will continually increase.
D) Payment on the first order ensures payments on subsequent orders.

Question

Quizplus · Accepted Answer

The assumption made is that customers who have made repeat orders are more likely to make future payments, thus lowering the break-even probability of collection. Therefore, option D is the correct choice as it directly relates to the assumption made. Options A, B, and C are not relevant to the given assumption.

Which of the Following Assumptions Is Made When Declaring That