A Cash Budget Does All of the Following EXCEPT

question 9

Multiple Choice

A cash budget does all of the following EXCEPT:

• A)helps a company manage cash by planning cash receipts and cash payments.
• B)determines if the company will have excess cash available for investing purposes.
• C)determines if the company will need to borrow money.
• D)assess the riskiness of a new product.

---

Definitions:

Direct Labor Cost

The expense associated with employees directly involved in the production of a company's products, reflecting wages for tasks that are integral to manufacturing.

Conversion Cost

The combined costs of direct labor and manufacturing overhead, reflecting the expenses to convert raw materials into finished goods.

Factory Overhead Cost

Indirect costs associated with manufacturing, such as utilities, maintenance, and salaries for managers, that cannot be traced directly to specific products.

Direct Labor Cost

The cost associated with the work done by those actually manufacturing a product or directly providing a service.