Which One of the Following Will Increase the Operating Cash

question 57

Multiple Choice

Which one of the following will increase the operating cash flow as computed using the tax shield approach?

• A)Decrease in depreciation
• B)Decrease in sales
• C)Increase in variable costs
• D)Decrease in fixed costs
• E)Increase in the tax rate

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Definitions:

Strategic Planning

The process by which an organization defines its strategy, or direction, and makes decisions on allocating its resources to pursue this strategy.

Tactical Planning

Short-term, detailed planning that supports strategic decisions, focusing on current operations and immediate actions.

Vision

A clear and inspirational long-term desired change resulting from an organization or individual's work.