Accurate Estimation of Total Costs Does Not Require a Cross-Functional

question 25

True/False

Accurate estimation of total costs does not require a cross-functional approach.It only requires that supply management carefully perform extensive time and motion studies to estimate accurate costs.

---

Definitions:

Residual Dividend Policy

A strategy where dividends are based on earnings minus funds the firm retains to finance the equity portion of its investment and working capital requirements.

Special Dividend

A one-time distribution of earnings to shareholders, oftentimes an indication of excess cash the company wants to return.

Homemade Dividend

A concept where investors create their own dividend policy by selling a portion of their portfolio of equities instead of relying on company-issued dividends.

Liquidating Dividend

A type of dividend paid by a company that is returning a portion of the capital to its shareholders, typically during dissolution.