Terminator, Inc

question 79

Multiple Choice

Terminator, Inc. keeps excess cash on hand in case of an industrial accident in the manufacturing of its wheat herbicide. This is an example of a ____________ for holding cash.

• A) speculative need
• B) transactions need
• C) deterministic need
• D) compensating need
• E) precautionary need

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Definitions:

Manufacturing Costs

The total expense involved in the manufacture of a product, including direct labor, direct materials, and manufacturing overhead.

Scrap Metal

Waste metal material that can be recycled or reused, often collected and sold by businesses or individuals.

Differential Analysis

The process of comparing the costs and benefits of alternative business decisions, focusing on differences in outcomes.

Finished Desk

A final product, specifically a desk, that has completed the manufacturing process and is ready for sale.