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Assignment help 236

The financial managers of a company would have to be aware of the suppliers terms, such as a 3% discount if the payment is made within 10 days, or pay the full amount in 30 days. The cost of passing up this discount may be severe. However if the discount is not taken, the store should wait until the last day to pay, as they will be able to stretch the time that they have with the money before paying for the credit.

Is there much value to taking a couple percent off of an invoice compared to “waiting until the last day to pay”? Does it make a difference to the company?  


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