Chapter 10: Accounts Receivable and Inventory Management.
After studying Chapter 10, you should be able to:
- List the key factors that can be varied in a firm's credit policy and understand the trade-off between profitability and costs involved.
- Understand how the level of investment in accounts receivable is affected by the firm's credit policies.
- Describe possible sources of information you might use to analyze a credit applicant.
- Understand the importance of managing the firm's investment in inventory.
- Describe the elements of a Just-in-Time (JIT) inventory system.
- Describe and use various tools of inventory control.