XYZ Ltd Begins with a Cash Balance of $600 000

question 1

Multiple Choice

XYZ Ltd begins with a cash balance of $600 000 and its cash outflows exceed its inflows by $100 000 each week.Calculate how long the supply of cash would last.

• A)Four weeks.
• B)Two weeks.
• C)Six weeks.
• D)Three weeks.

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Definitions:

Manufacturing Overhead

The collective costs associated with the production process that cannot be directly traced to specific units produced, including indirect materials, labor, and other overhead expenses.

Absorption Costing

A costing method that includes all manufacturing costs, direct materials, direct labor, and both variable and fixed manufacturing overhead, in the cost of a product.

Cost Structure

The relative proportion of fixed, variable, and mixed costs in an organization.

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and manufacturing overhead.