The cost of marginal investment in accounts receivable can be calculated by finding the difference between the average investment in accounts receivable before and after the introduction of the changes in credit standards.

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The cost of marginal investment in accounts receivable is calculated by considering the additional investment in accounts receivable due to changes in credit policies, not just the difference in average investment before and after these changes. It involves assessing the incremental costs associated with the additional accounts receivable, including factors like the cost of additional financing and potential bad debt expenses.

The Cost of Marginal Investment in Accounts Receivable Can Be