Which of the Following Is not a Basic Principle of Cash

question 107

Multiple Choice

Which of the following is not a basic principle of cash management?

• A)Increase the speed of collection on receivables.
• B)Maintain idle cash.
• C)Keep inventory levels low.
• D)Delay payment of liabilities.

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Definitions:

Direct Labor Cost

The total cost associated with employing workers who directly manufacture products or perform services, including wages and other benefits.

Overhead Applied

The process of allocating estimated overhead costs to individual products or job orders based on a predetermined rate or method.

Estimated Total Manufacturing Overhead

The projected total costs associated with the manufacturing process that are not directly tied to the production of goods.

Estimated Total Manufacturing Overhead

The anticipated total costs associated with the manufacturing process, excluding direct materials and direct labor.