In Order to Evaluate Risk,management May Also Set Qualitative Risk

question 98

Multiple Choice

In order to evaluate risk,management may also set qualitative risk classes.Rank these four projects from the least to the most risky. 1.Completely new market in Canada
2) Completely new market in South America
3) Addition to normal product line
4) Repair to old machinery

• A) 4,3,1,2
• B) 1,2,3,4
• C) 3,4,1,2
• D) 2,3,4,1

Identify strategies and tools for optimizing cash balances and managing float effectively.

Distinguish between various motives for holding cash and how they influence cash management policies.

Apply the concept of Net Present Value (NPV) to decisions regarding cash management services.

Comprehend the implications of cash concentration and collection strategies on a firm's liquidity.

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Definitions:

Total Costs

The complete accumulation of costs involved in the production, operation, or project completion, encompassing both fixed and variable costs.

Overapplied Overhead

A scenario in which the overhead cost assigned to manufacturing exceeds the overhead cost that was actually incurred.

Net Operating Income

The profit a company generates from its operations, excluding taxes and interest.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor.