A Series of Decisions Made Over a Short-Term Period Regarding

question 52

Multiple Choice

A series of decisions made over a short-term period regarding cash inflows and outflows is called

• A)cash flow.
• B)money management.
• C)liability management.
• D)asset control.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the activity of a business, such as sales volume or production levels.

Fixed Expenses

Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance premiums.

Target Profit

The amount of net income a business aims to achieve within a specific period.