Which of the Following Is Not Directly Involved in a Firm's

question 22

Multiple Choice

Which of the following is not directly involved in a firm's management of its working capital?

• A) Inventory
• B) Fixed assets
• C) Accounts receivable
• D) Accounts payable

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Definitions:

Variable Cost

A variable cost varies with the level of output or sales, meaning it increases as production increases and decreases as production decreases.

Net 30 Policy

A term indicating that payment is due in full 30 days after the goods are delivered or the service is completed.

Average Inventory

The mean value of all inventory a company holds over a certain period of time, reflecting the average amount of stock available.

Carrying Cost

The total cost of holding inventory, including storage, insurance, depreciation, and opportunity costs, among others.