Customers should be billed for back-orders when
A)the customer purchase order is received
B)the back-ordered goods are shipped
C)the original goods are shipped
D)customers are not billed for back-orders because a back-order is a lost sale

Question

Quizplus · Accepted Answer

Customers should be billed for back-orders when the back-ordered goods are shipped. This ensures that the customer is only charged for the items they have received, and that the company can accurately track inventory and revenue. Billing the customer when the purchase order is received or when the original goods are shipped would result in inaccuracies in the billing process. Option D is also incorrect, as a back-order is not necessarily a lost sale – it simply means that the product is temporarily out of stock and will be fulfilled at a later date.

Customers Should Be Billed for Back-Orders When