All of the Following Are True Regarding the Management and Monitoring

question 157

Multiple Choice

All of the following are true regarding the management and monitoring of cash except

• A)companies may have plenty of sales, but insufficient cash to support operations.
• B)the cash to cash operating cycle for a manufacturer is generally shorter than that of a merchandising company.
• C)manufacturers may experience a significant lag between the purchase of raw materials and the receipt of cash from customers.
• D)companies should have sufficient cash to meet payments but minimize the amount of non-revenue-generating cash on hand.

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Definitions:

Work In Process

An accounting category representing partially completed goods awaiting completion and sale.

Cost Of Production Report

A cost of production report details the total cost and production quantity within a manufacturing department, helping in tracking and controlling production expenses.

Control Operations

Processes designed to ensure business activities are conducted in accordance with prescribed procedures and standards.

Lean Production Process

A methodology aimed at minimizing waste and maximizing productivity in the manufacturing sector without sacrificing quality.