_____ Project Working Capital Needs by Estimating What Out-Of-Pocket Expenses

question 41

Multiple Choice

_____ project working capital needs by estimating what out-of-pocket expenses will be incurred and when revenues from these sales are to be collected.

• A) Cash budgets
• B) Dividend statements
• C) Capital account statements
• D) Expense accounts

---

Definitions:

Variable Costs

Charges that directly correlate with the volume of production or sales, such as direct labor and materials required for production.

Fixed Costs

These are business expenses that remain the same regardless of the level of production or sales, such as rent or salaries.

Break-Even Point

The level of sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Variable Costs

Expenses that fluctuate in direct proportion to changes in levels of production or sales, such as materials and labor.