The Percentage-Of-Sales Budget Is Based on the Availability of Funds

question 104

True/False

The percentage-of-sales budget is based on the availability of funds rather than on opportunities.

---

Definitions:

Cash Flows

Cash flows are the net amount of cash and cash-equivalents being transferred into and out of a business.

Required Return

The minimum expected return on an investment, necessary to compensate for the risk taken by the investor.

IRR

The Internal Rate of Return (IRR) is a financial metric used to estimate the profitability of potential investments. It is the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Cash Flows

The complete aggregate of monetary circulation into and out of a company, crucially influencing its quick assets.