The Term "Utility" Means

question 21

Multiple Choice

The term "utility" means

• A)satisfaction
• B)a low-valued good
• C)productivity
• D)adaptability
• E)efficiency

Distinguish between cash, cash equivalents, and other types of financial instruments.

Understand the implications of NSF checks and bank service charges on cash management.

Calculate and interpret the Days' Cash on Hand ratio.

Understand the establishment and replenishment of a petty cash fund.

---

Definitions:

Per Unit

A measure or cost expressed as an amount per individual item or unit.

Variable

A quantity that can change or vary, often used in mathematics and statistical analysis as well as in economic models to represent changing economic indicators.

Fixed Cost

Costs that do not vary with the level of production or sales over a certain range, such as rent, salaries, and insurance.

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a product and are a significant component of its cost.