The major topic for this module is monitoring the outcomes of credit policy. The reading assignment is chapters 5, 9, and 8 in Making Sound Credit Policy Decisions by Frederick C. Scherr. (This text is included in your registration.) Topics covered include: information credit limits and credit investigation; risk credit limits and their application; outsourcing credit functions; credit management for the small firm; measurement error in monitoring credit outcomes; accurately measuring discount expense, days to pay, and bad debt expense; budgeting credit costs; and variance analysis of accounts receivable balances. The case problem for this module is The Case of the Dubious DSO, a case in monitoring credit policy outcomes, which is at the end of Chapter 8.
Dr. Frederick C. Scherr is a Professor Emeritus of Finance at the College of Business and Economics at West Virginia University, where he taught for 30 years and won both the College’s Outstanding Teacher and Outstanding Researcher awards. He is the author of more than 30 research articles, four textbooks, and many articles in professional publications such as The Credit and Financial Management Review, The Credit Manager, and Business Credit. He has done extensive work in adult education for the National Association of Credit Management, including teaching at the Graduate School of Credit and Financial Management, and for private corporations.