Why Is It That a Firm Will Typically Not Pay

question 11

Multiple Choice

Why is it that a firm will typically not pay for general training?

• A) General training is free.
• B) General training is expensive.
• C) The benefits of general training depreciate quickly.
• D) General training does not increase worker productivity.
• E) The skills gained from the general training are transferable to other firms.

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Definitions:

Variable Expense

Costs that vary directly with the level of output or sales, including materials and labor costs.

Fixed Selling and Administrative Expense

Overhead costs not directly tied to production, including salaries of sales personnel and office rent, that remain constant regardless of sales volume.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, focusing on a company's liquidity and ability to meet short-term obligations.

Budgeted Cash Receipts

Forecasted cash inflows for a certain period, accounting for all expected sources of revenue including sales, investments, and loans.