Final answer:
A credit sale should always be reviewed by a credit manager if it exceeds the customer's credit limit to minimize potential losses and maintain financial stability. The credit manager evaluates the customer's credit history and payment patterns to make an informed decision.
Step-by-step explanation:
A credit sale should always be reviewed by a credit manager if it exceeds the customer's credit limit. This statement is true.
When a customer exceeds their credit limit, it indicates that they may have difficulty repaying their debts. By reviewing the credit sale, the credit manager can assess the risk involved and decide whether to approve the sale or not. This helps to minimize the potential losses for the company and maintain financial stability.
For example, if a customer has a credit limit of $1,000 and they want to make a purchase of $1,500, the credit manager would evaluate the customer's credit history, payment patterns, and overall financial health to determine whether to approve the sale or request payment in a different form.