The Financial Manager Has to Determine a Value to Uncertain

question 3

Multiple Choice

The financial manager has to determine a value to uncertain cash flows.The variables involved in this determination are:

• A)amount
• B)timing
• C)risk
• D)All of the choices are correct.

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Definitions:

Current Costs

The costs or expenses associated with the acquisition, production, or maintenance of assets and services at present market prices.

Freight Charges

Fees associated with the transportation of goods over distance, typically paid by the shipper or receiver.

Inventory Ownership

Refers to having legal title to goods and merchandise stored within a firm's warehouse or storage facility.

Weighted Average

It's a calculation that takes into account the varying degrees of importance of the numbers in a data set, often used in determining the cost of inventory.