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Exact management of receivables acquires a suitable collection policy that outlines the collection procedures. Collection policy consider as the procedure adopted through a firm to collect payments due on past accounts. The fundamental objective of the collection policy is to minimize bad debt losses and average collection period. A strict collection policy can influence the goodwill and can adversely influence potential future sales while on the other hand a lenient collection policy can lead to risen average collection period and raised bad debt losses. An optimum collection policy must intend towards decreasing collection expenditure.
Question: (a) A retail store wants to evaluate how many units it must sell in order to earn a profit of Rs 10000 per month if the price of the unit is Rs 300, the average varia
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After going through this section, you must be capable to: Know the need for establishing sound credit policy; Identify the different credit policy variables; Know the cred
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