Classifying costs by behavior with changes in volume of activity involves: Multiple Choice Identifying fixed cost and variable cost. Identifying cost of goods sold and operating costs. Identifying costs as financial or managerial. Identifying costs in a physical manner. Identifying both quantitative and qualitative cost factors.

Garcia industries has sales of $200,000 and accounts receivable of $18,500, and it gives its customers 25 days to pay. the industry average dso is 27 days, based on a 365-day year. if the company changes its credit and collection policy sufficiently to cause its dso to fall to the industry average, and if it earns 8.0% on any cash freed-up by this change, how would that affect its net income, assuming other things are held constant? a. $241.45b. $254.16c. $267.54d. $281.62e. $296.44