The decision to grant credit should consider all the following except the:
A)delay in revenues from granting credit.
B)immediate costs of granting credit.
C)probability of nonpayment.
D)cost of short-term borrowing.
E)fixed costs incurred during the credit period.

Question

Quizplus · Accepted Answer

All of the options listed, except for fixed costs incurred during the credit period, should be considered when making a decision to grant credit. The fixed costs incurred during the credit period are irrelevant to the decision to grant credit.

The Decision to Grant Credit Should Consider All the Following