One Way a Firm Can Reduce the Amount of Cash

question 149

Multiple Choice

One way a firm can reduce the amount of cash it needs in any one month is to None of the above clone of prior item.

• A)slow down the payment of receivables
• B)speed up the payment of payables
• C)speed up the payment of taxes
• D)speed up the payment of wages
• E)none of the above

---

Definitions:

Value-added Activities

Activities that increase the value of goods or services to the consumer, thereby making them more valuable in the eyes of customers.

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities they require, improving cost accuracy.

Cost Pool

A grouping of individual costs, typically by department or service center, from which cost allocations are made later.

Activity

Activity in the business context generally refers to any action or operation within a company, ranging from financial transactions to employee tasks that contribute to the company's goals.