Break-Even Locational Analysis Is Used Only When

question 55

Multiple Choice

Break-even locational analysis is used only when

• A) Cost is the only factor.
• B) Profit is the only factor.
• C) Both cost and profit are factors.
• D) Break-even analysis is not used in any of these situations.

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Definitions:

Float Management

The practice of managing the time difference between issuing and clearing checks to optimize the available cash flow.

Lock Box Systems

A service offered by banks to companies for the receipt of payment from customers, involving the collection of payments in regional post office boxes and processing them quickly.

Remote Disbursing

A financial process used by organizations to distribute funds or payments from a central location to beneficiaries or accounts that are geographically dispersed.

Financing Receivables

The process of obtaining funds by selling accounts receivable to a financier or through factoring.