In determining an optimal credit extension policy, which of the following controllable variables should a company’s financial manager consider?
A. Collection effort, credit standards, and multilateral netting.
B. Credit standards, credit terms, and collection effort.
C. Credit terms, credit standards, and inventory cycle.
D. Credit terms, credit standards, and lead time.
Answer:B
In determining an optimal credit extension policy, which of the following controllable variables should a company’s financial manager consider?
A. Collection effort, credit standards, and multilateral netting. B. Credit standards, credit terms, and collection effort. C. Credit terms, credit standards, and inventory cycle. D. Credit terms, credit standards, and lead time.