Which of the Following Is NOT Directly Reflected in the Cash

question 68

Multiple Choice

Which of the following is NOT directly reflected in the cash budget of a firm that is in the zero tax bracket?

• A) Payment lags.
• B) Payment for plant construction.
• C) Cumulative cash.
• D) Repurchases of common stock.
• E) Writing off bad debts.

---

Definitions:

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it depletes to a critical level.

Fixed-Period Model

An inventory control model where orders are placed at fixed intervals, such as weekly or monthly, regardless of inventory level.

Safety Stock

A quantity of stock kept on hand to protect against unexpected increases in demand or delays in supply delivery.

Production Order Quantity Model

An economic order quantity technique applied to production orders.