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The total cost of granting credit has two components. ________ are the costs of lost...

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Finance

The total cost of granting credit has two components. ________ are the costs of lost sales incurred when credit is not granted and are inversely related to the amount of credit extended. ________ are the cash flows that are incurred when credit is granted and are positively related to the amount of credit extended.

  • Stockout costs; Opportunity costs.

  • Opportunity costs; Interest costs.

  • Carrying costs; Opportunity costs.

  • Sales costs; Carrying costs.

  • Opportunity costs; Carrying costs.

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