Question #$1$

Which method will achieve a company$$s stated goal if increasing receivable collections without alienating customers?

A$)$ Extending payment terms to net $30$ to net $15$

B$)$ Instituting a cash only policy instead of net $15$

C$)$ Requiring payment within $90$ days instead of $60$ days of delivery

D$)$ Offering a $5\%$ discount if a customer pays for purchase upon delivery

Question #$2$

The management team of a company wishes to asses the feasibility of keeping more groceries in the company$$s refrigerated warehouse instead of ordering when the inventory is needed. The management team holds a large amount of perishable inventory in their warehouse. What is a significant cost the management team should consider?

A$)$ Sales cost

B$)$ Purchase cost

C$)$ Storage cost

D$)$ Turnover cost