Managerial Finance

question 146

Multiple Choice

Managerial finance

• A) recognizes funds on an accrual basis.
• B) involves the design and delivery of advice and financial products.
• C) devotes the majority of its attention to the collection and presentation of financial data.
• D) involves tasks such as budgeting, financial forecasting, cash management, and funds procurement.

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Definitions:

Variable Selling

Selling expenses that change in proportion to the volume of sales, such as commissions.

High-low Method

An accounting technique used to estimate variable and fixed costs from the highest and lowest levels of activity.

Variable Component

Part of a cost or expense that varies directly with the level of activity, production, or sales.

Inspection Cost

Expenses associated with the activity of checking and verifying the quality or standards of products or materials.