What conclusions can you make about credit terms from


Compute the effective cost of not taking the cash discount under the following trade credit terms: 

a) 2/10 net 40
b) 2/10 net 50
c) 3/10 net 50 d) 2/20 net 40.

What conclusions can you make about credit terms from reviewing your answers to above?

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Managerial Accounting: What conclusions can you make about credit terms from
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