The benefit(s)of a lock box system include

Question

Quizplus · Accepted Answer

A lock box system has the potential to reduce all three types of float - mail float, processing float, and availability float. By having payments sent to a centralized location and processed quickly, mail float is reduced. Similarly, by having payments processed automatically and efficiently, processing float is reduced. Finally, having access to funds more quickly reduces availability float. Therefore, D is the best choice as it includes all of these potential benefits.

The Benefit(s)of a Lock Box System Include