In order to price objectively, the ________ of extending credit must be fully incorporated into the pricing decision.
A) Costs
B) Benefits
C) Rate
D) Value
E) None of the above

Question

Quizplus · Accepted Answer

The cost of extending credit includes the expenses such as the risk of default, administrative costs, and financing costs of credit. These costs must be fully considered when determining the price of goods or services offered on credit. Therefore, choice A is the best answer.

In Order to Price Objectively, the ________ of Extending Credit