Why Is It Stated That the Safest Way of Evaluating

question 12

Essay

Why is it stated that the safest way of evaluating the potential gains from a merger is to focus on the changes in cash flow that will transpire as a result of the merger?

---

Definitions:

Variable Maintenance Costs

These are expenses that fluctuate in direct proportion to the level of activity or production, such as the costs of repairing machinery which increase with more intensive use.

Equipment Services Department

A division within an organization responsible for maintaining, repairing, and ensuring the operational efficiency of machinery and equipment.

Fabrication

The process of constructing products by combining diverse materials through various manufacturing techniques.

Assembly Departments

Specific areas or segments in a manufacturing facility where components are assembled into final products.