Which of the following is not a cost related to the extension of credit to customers?
A)bad-debt losses
B)cash discounts
C)quantity discounts
D)collection costs

Question

Quizplus · Accepted Answer

Quantity discounts are not a cost related to the extension of credit to customers. Instead, they are discounts offered to customers who purchase large quantities of goods or services, which incentivizes them to purchase more and can increase sales for the seller. The other options listed are all costs that may be associated with extending credit, including potential losses from customers who do not pay their bills (bad-debt losses), expenses related to collecting payments from customers (collection costs), and discounts offered to customers who pay their bills quickly (cash discounts).

Which of the Following Is Not a Cost Related to the Extension