1. __________ provides insight on the comparison of costs and benefits of a proposed change of credit policy.

a. Changes in credit policy

b. Financial analysis

c. Marginal analysis

d. Credit analysis

2. MMK Bhd. is considering a proposed change to the companys current credit policy. Under the current policy, the company sales is RM500,000 and the proposed change is expected to increase the sales by 20percent. The current terms are net 30 and the proposed terms are 2/10 net 30. If 40percent of customers would take the discount, what would be the amount of the cost of customers taken the discount to MMK Bhd.?

a.RM4,000

b.RM10,000

c.RM200,000

d.RM4,800

The normal credit terms for a business are that payment should be made within 40days of the invoice date but a settlement discount of 2percent is offered for payment within 10days of the invoice. How would this be expressed on the sales invoice to the customer?

a. Gross 40days net 2percent 10days

b. Gross 40days 2percent discount for payment within 10days

c. Net 40days 2percent discount for payment within 10days

d. Net 10/40days