One Way a Firm Can Reduce the Amount of Cash

question 93

Multiple Choice

One way a firm can reduce the amount of cash it needs in any one month is to

• A) slow down the payment of receivables
• B) delay the payment of wages
• C) speed up the payment of taxes
• D) speed up the payment of wages

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Definitions:

Variable Component

Denotes a part of a cost or expense that varies directly with the level of activity or output.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing with the level of production or sales but not in direct proportion.

Electrical Cost

The expense associated with the consumption of electrical energy or the cost related to electrical work in construction or maintenance.

Production Volume

The total quantity of goods or products manufactured within a specific period.