Which of the Following Is Not a Key Budgeting Influence

question 76

Multiple Choice

Which of the following is not a key budgeting influence for a personal financial plan?

• A) Change investments from risky stocks to more conservative stocks
• B) Improve near term net cash flow
• C) Reduce debt payments by 50%
• D) Improve long-term net cash flow

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Definitions:

Variable Cost

Expenses that vary proportionally with the level of production or service output, such as materials or labor costs.

Capacity

The maximum amount of work or production an organization is capable of completing in a specified period.

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them to present value using a specific rate, often used in capital budgeting.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.