Answer (B) is correct . A quantity discount is an attempt to increase sales by reducing the unit price on bulk purchases. It concerns only the price term of an agreement, not the credit term, and thus is unrelated to credit and collection policy.
Answer (A) is incorrect because The quality of accounts is important to credit policy since it is inversely related to both sales and bad debts.
Answer (C) is incorrect because Offering a cash discount improves cash flow and reduces receivables and the cost of extending credit.
Answer (D) is incorrect because The level of collection expenditures must be considered when implementing a collection policy. The marginal cost of a credit and collection policy should not exceed its revenue.
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