The optimal credit policy will do which one of the following?
A)maximise sales
B)minimise the total costs of granting credit
C)minimise carrying costs
D)minimise bad debts
E)maximise units sold

Question

Quizplus · Accepted Answer

The optimal credit policy should aim to minimise the total costs of granting credit, which includes both carrying costs and bad debts. While maximising sales and units sold are important considerations, they should not be prioritised at the expense of incurring higher costs.

The Optimal Credit Policy Will Do Which One of the Following