The Amount of Cash a Firm Needs to Be Able

question 6

Multiple Choice

The amount of cash a firm needs to be able to pay its bills is sometimes referred to as a(n) :

• A)operating balance.
• B)compensating balance.
• C)transactions balance.
• D)precautionary balance.

Appreciate the complexities of sales performance evaluation, including ethical dilemmas and assessment methods.

Understand the steps and decisions involved in planning an advertising campaign.

Distinguish between different advertising appeals and strategies.

Identify the different purposes and types of advertising (inform, persuade, remind).

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Definitions:

Variances

Differences between planned or expected financial outcomes and the actual results.

Standard Direct Materials

The budgeted cost for direct materials which are the raw materials that can be directly attributed to the production of goods, used for budgeting and performance evaluation.

Actual Materials Price

The real cost incurred to acquire materials used in the production process, as opposed to the budgeted or standard cost.

Standard Price

A predetermined cost assigned to materials, used for budgeting and variance analysis.