Purposes of Managing Liquidity Include All of the Following Except

question 25

Multiple Choice

Purposes of managing liquidity include all of the following except

• A)determining how to keep the majority of your assets in liquid form.
• B)having enough liquid assets to cover cash shortage deficiencies.
• C)maintaining adequate liquidity to avoid borrowing every time you need money.
• D)maintaining just enough liquid assets to meet your needs.

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Definitions:

Standard Hours

Refers to the set amount of time expected to perform a specific task or produce a specific quantity of goods.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, used in manufacturing cost analysis.

Actual Costs

The real costs incurred in the production of goods or services, as opposed to estimated or forecasted costs.

Standard Costs

Standard costs are predetermined calculations used in cost accounting that represent the expected cost of manufacturing or producing goods under normal conditions.