Question

Which of the following is not a key decision that needs to be made in the revenue cycle?

A Which vendor should inventory be purchased from?
B How can customer payments be processed to maximize cash flow?
C How should merchandise be delivered to customers?
D Should credit be extended to customers?

Answer 1

The key decision that is not a part of the revenue cycle is C. how merchandise should be delivered to customers.

Step-by-step explanation:

The key decision that is not a part of the revenue cycle is option C, 'How should merchandise be delivered to customers?'

In the revenue cycle, the primary decisions involve the purchase of inventory from vendors, the processing of customer payments to maximize cash flow, and whether credit should be extended to customers.

These decisions directly impact the inflow and outflow of cash and the overall revenue generation for a business.

For example, deciding which vendor to purchase inventory from can affect the cost of goods sold and the quality of the products offered.

Maximizing cash flow through efficient payment processing can help improve the financial stability of the business.

The decision to extend credit to customers involves assessing their creditworthiness and establishing policies for payment terms and collection procedures.