There Should Be Enough Money in a Revolving Savings Fund

question 125

Multiple Choice

There should be enough money in a revolving savings fund to

• A)pay all short-term debt.
• B)avoid running out of money.
• C)pay all fixed expenditures.
• D)pay for all long-term goals.

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Definitions:

Competitive Bidding

Competitive bidding is a procurement process where several suppliers submit bids to win a contract, offering the best terms in terms of price, quality, and service.

Firm Bidding

A bidding process where the bid price is fixed and non-negotiable, often used in contexts requiring budget adherence or strict cost controls.

Target Cost

is the estimated price at which a product needs to be sold in the market, guiding the design and manufacturing process to ensure profitability.

Fixed Costs

Costs that do not change with the level of output or activity, such as rent or salaries.