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Pros and cons of providing credit to customers

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Reference no: EM133051944

DISCUSSION QUESTIONS

1. Discuss the pros and cons of providing credit to customers. If you do decide to provide credit. what policies should you establish and enforce?

2. Discuss how the use of economic order quantity (EDD) and reorder calculations can bene?t a retail business. What are the drawbacks in using these calculations?

3. Which of the asset valuation methods [book value, disposal value. replacement value. and fair market value} is the best for determining the value of your business's assets? Explain your choice, detailing how your preferred method is better than the other three.

4. How would you estimate the whole of life costs of an expensive capital asset, such as an executive airplane?

5. Discuss the advantages and disadvantages to payback period and to return on investment [ROI] as analysis tools for making capital investment decisions. Which do you prefer and why?

6. Under what circumstances might you be more profitable by outsourcing production?

7'. What are the reasons for documenting the processes of your business?

8. Under what circumstances is documentation of processes not necessary?

Reference no: EM133051944

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