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Which of the following determinants can measure the effectiveness of the billing system?

A. Collection summary
B. Collection calls
C. Collection letters
D. Collection assistance
E. Collection ratio

User Shinese
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1 Answer

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Final answer:

The determinant that can measure the effectiveness of the billing system is the Collection ratio. The collection ratio is calculated by dividing the total amount collected by the total amount billed. A higher collection ratio indicates a more effective billing system.

Step-by-step explanation:

The determinant that can measure the effectiveness of the billing system is the Collection ratio. The collection ratio is calculated by dividing the total amount collected by the total amount billed.

A higher collection ratio indicates a more effective billing system.

For example, if a company bills $10,000 and collects $8,000, the collection ratio would be 0.8 or 80%. This means that 80% of the billed amount was successfully collected.

In this context, options A, B, C, and D (Collection summary, Collection calls, Collection letters, Collection assistance) do not directly measure the effectiveness of the billing system, as they are methods or tools used in the collection process, rather than indicators of overall effectiveness.

User SingleWave Games
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