The Elementary School Teacher Sent the Following Memo to Her

question 153

Multiple Choice

The elementary school teacher sent the following memo to her school's principal for his authorization:??Will:?Please order another two cases of construction paper and twelve more glue sticks from our supplier. I'll need this by next Thursday. Thank you. -Heather??What type of buying situation is this?

• A)a make-or-buy
• B)a value buy
• C)a straight rebuy
• D)a modified rebuy

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Definitions:

Net Cash Flows

The net amount of cash and cash equivalents moving into and out of a business within a specified period.

Payback Method

A capital budgeting technique that calculates the length of time required to recoup the initial investment cost through the net cash flows it generates.

Cash Flow

Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business.

Economic Life

The expected period of time during which an asset remains useful to the owner for generating income or other benefits.