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The aim is to explore a credit management model using marginal costing to optimize decision-making for sales and debt losses.

Marginal Analysis of Credit Sales.

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The aim is to explore a credit management model using marginal costing to optimize decision-making for sales and debt losses.
Developed a credit model incorporating marginal costing methodology.
Analyzed the impact of tight versus easy credit policies on sales and bad debt losses.
Utilized quantitative techniques to provide decision-making support.
Reviewed industry data on accounts receivable trends.
Identified a balance between sales generation and bad-debt losses through the model.
Demonstrated the rising trends in accounts receivable and their implications for management.
Highlighted improved credit policy decisions leveraging electronic data processing techniques.

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This article reveals a credit model that balances sales losses and bad-debt risks in credit management, indicating improved decision-making.

P. Michael Davis (1966) studied this question.

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This article reveals a credit model that balances sales losses and bad-debt risks in credit management, indicating improved decision-making.