In Cash Flow Estimation, the Existence of Externalities Should Be

question 71

True/False

In cash flow estimation, the existence of externalities should be taken into account if those externalities have any effects on the firm's long-run cash flows.

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Definitions:

Cost Of Goods Sold

Directly attributable expenses in the making of products sold by a business, encompassing materials and labor.

Materials Quantity Variance

The variance between the real amount of materials consumed in the manufacturing process and the anticipated standard amount, measured at the standard expense.

Standard Hours

The predetermined amount of time expected to complete a task or produce a unit of product under normal conditions.

Total Standard Cost

The aggregated cost of direct materials, direct labor, and manufacturing overhead used in producing a product under standard costing.