Which of the following is not a cost related to the extension of credit to customers?
A)Bad-debt losses
B)Prompt payment discounts
C)Quantity discounts
D)Collection costs

Question

Quizplus · Accepted Answer

Quantity discounts are reductions in price given to customers for purchasing large volumes and are not directly related to the extension of credit. Bad-debt losses, prompt payment discounts, and collection costs are all costs associated with extending credit to customers.

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