All of the following are costs of credit EXCEPT
A) bad debt losses.
B) credit analysis expenses.
C) lost revenues when customers do not take advantage of trade discounts.
D) the increased investment in accounts receivable.

Question

Quizplus · Accepted Answer

The three factors of cost of credit include cost of holding increased accounts receivable, bad debt losses, and the cost of administering the accounts receivable which includes credit analysis.

All of the Following Are Costs of Credit EXCEPT