A Change in Which of the Following Variables Would Affect

question 2

Multiple Choice

A change in which of the following variables would affect the cash flow for a firm?

• A) Current profit.
• B) Current expenditure on plant and equipment.
• C) Total cost.
• D) Total sales revenue.
• E) Expected future profit.

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Definitions:

Units

A measurement for the quantity of a product, service, or resource, used interchangeably depending on the context.

Direct Labour

Direct labour relates to the employees or workers directly involved in the production of goods or services, whose wages are considered a direct cost of production.

Overhead Budget

A financial plan that estimates the expected overhead costs for a business over a certain period.

Indirect Materials

Materials used in the production process that cannot be directly linked to specific products or are not significant enough to warrant tracing to individual products, such as lubricants for machinery.