Which of the following is NOT a typical step in Managing Accounts Receivable?

• A. Randomized pricing
• B. Timely billing
• C. Complete invoices
• D. Contract terms.

Answer: (A)

Managing accounts receivable focuses on turning sales into cash by making invoicing and collection efficient. The main steps involve billing promptly so cash flows aren’t delayed, and ensuring invoices are complete with all necessary details—like itemized charges, quantities, taxes, and correct customer information—so there’s nothing on the invoice that stalls payment. Clear contract terms matter too; they define when payments are due, any early-payment discounts, late fees, and accepted payment methods, creating a predictable framework for collecting what is owed.

Randomized pricing does not fit into this process. Pricing decisions belong to how a project is sold and contracted, not to the steps that manage collecting payment. Varying prices in a random way would create confusion and disputes over what’s owed, undermining the goal of timely, reliable collections.