IASSC Certified Lean Six Sigma Black Belt (ICBB) — Question 8

What dollar amount of savings would a project show if it reduced your outstanding Accounts Receivable by $1.4 million dollars to $5.3 million total and your organizations marginal cost of capital was 6.2%?

Answer options

• A. $43,400
• B. $86,800
• C. $117,500
• D. $328,600

Correct answer: B

Explanation

The correct answer is B, $86,800, which represents the savings calculated from the reduced Accounts Receivable at the marginal cost of capital of 6.2%. The other options do not accurately reflect the financial impact of the reduction in Accounts Receivable based on the given parameters.