New credit policies have been implemented to prevent entering any new sales order that would cause customers’ accounts receivable balance to exceed average sales for any two-month period in the prior twelve month period resulting in controlled collectability. After implementation there were decreased sales and slower order entries as reported from divisional sales management. Division management contends that these are a direct result of the new credit policy constraints.

New credit policies have been implemented to prevent entering any new sales order that would cause customers’ accounts receivable balance to exceed average sales for any two-month period in the prior twelve month period resulting in controlled collectability. After implementation there were decreased sales and slower order entries as reported from divisional sales management. Division management contends that these are a direct result of the new credit policy constraints.

Sales management’s data and information provides
A . Feedback control data on the new credit policy.
B . Irrelevant argumentative information.
C . Evidence that the new credit policy is not meeting the stated corporate objective to control the collectability of new sales volume.
D . A statistically valid conclusion about the impact on customer goodwill concerning the credit policy.

Answer: A

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