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:

Factory Supplies

Items used in the manufacturing process that are not directly part of the final product, including cleaning supplies, tools, and machinery maintenance materials.

Factory Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and management salaries.

Used

Previously owned or operated, indicating items or equipment that are not new and have been utilized before.

Factory Building

A structure designed for manufacturing processes, where goods are produced or assembled by manpower, machinery, or both.