New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information provide:
The data and information compiled by sales management provide evidence that the new credit policies do not meet the stated corporate objective to improve collections. Despite the aim to enhance collections, the data shows decreased sales and delayed order entry, which indicate that the new policies may not be effective in achieving the desired outcome. This evidence directly challenges the effectiveness of the implemented credit policies concerning the corporate objective.
Why is it A?
Feedback control because sales management is interested in the effectiveness of the new credit policy. There is a comparison between new credit policies and actual data and information that show decreased sales and delayed order entry (resulting from new credit-policy constraints).
the credit department made new procedure for increasnig the credit limit and get more confirmation and promissory note for an example before giving the credit to the customer, customers rejected to follow the new procedures, so sales department complained to management with prove from customers like emails, that because of the new credit procedure the sales reduced, this call feedback on the new procedure applied.