Which One of the Following Sentences Is Correct About a Manufacturing

question 289

Multiple Choice

Which one of the following sentences is correct about a manufacturing firm with seasonal sales?

• A) The cash flows for the fixed expenses tend to remain relatively stable from one quarter to the next.
• B) Purchases of raw materials are normally paid for at the time of purchase.
• C) The primary suppliers to the firm are normally paid 30 days prior to supplying their goods to the firm.
• D) Capital expenditures tend to be relatively constant throughout the course of a year.
• E) The total cash disbursements tend to be relatively constant each quarter even though the cash collections vary considerably.

Analyze the impact of no salvage value and the effect of depreciation on investment decisions.

Evaluate and compare various investment projects using different capital budgeting techniques.

Understand the total cost approach to capital budgeting analysis and its application.

Comprehend the implications of replacing old equipment with new technology on cost savings and investment returns.

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Definitions:

External Change

Modifications or adjustments that occur outside an organization, which can impact its operations and strategies.

Management Philosophy

Relates to the set of beliefs and principles that guide the decision-making, strategies, and leadership practices of a manager or organization.

Type of Business

Categories or classifications of commercial organizations based on factors like ownership, size, and product or service rendered.

Chapter 7

A provision of U.S. bankruptcy law under which an individual or business liquidates assets to pay off debts under the guidance of a court-appointed trustee.