Chapter 10: Accounts Receivable and Inventory Management.
Objectives



cover.gif After studying Chapter 10, you should be able to:

  1. List the key factors that can be varied in a firm's credit policy and understand the trade-off between profitability and costs involved.
  2. Understand how the level of investment in accounts receivable is affected by the firm's credit policies.
  3. Describe possible sources of information you might use to analyze a credit applicant.
  4. Understand the importance of managing the firm's investment in inventory.
  5. Describe the elements of a Just-in-Time (JIT) inventory system.
  6. Describe and use various tools of inventory control.


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