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    When to relax credit standards

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    When should credit standards be relaxed ___________

    when sales are expected to increase, when costs are expected to decrease, when costs are excepted to increase faster than sales if the standards are not relaxed, or when the profit contribution from sales is greater than the cost contribution

    I believe - when the profit contribution from sales is greater than the cost contribution - is the best choice

    please advise answer & why - thanks!

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    https://brainmass.com/business/accounts-receivable-management/when-relax-credit-standards-35352

    Solution Preview

    When profit contribution from sale is greater than cost contribution.

    Relaxing credit ...

    Solution Summary

    The solution explains what condition is necessary to relax credit standards.

    $2.19

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