Potential savings from a lock-box system will be reduced by:
A) the additional processing time required.
B) the additional mailing time required.
C) local bank charges.
D) an increase in interest rates.

Question

Quizplus · Accepted Answer

Local bank charges can reduce potential savings from a lock-box system as banks may charge fees for maintaining the lock-box and processing the payments. The additional processing and mailing time required would not directly affect the potential savings. An increase in interest rates may even increase the potential savings from a lock-box system.

Potential Savings from a Lock-Box System Will Be Reduced By