Which One of the Following Is/are True

question 12

Multiple Choice

Which one of the following is/are true?

• A) The change in cash position is a linear relationship to production.
• B) If the sales are lower than the sales growth break-even point, the firm will run out of working capital.
• C) As the level of inventory increases, the required sales growth increases as well.
• D) As the level of inventory increases, the required sales growth decreases.

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Definitions:

Investment Centre

A business unit or segment which is responsible for its own revenues, expenses, and assets, and whose performance is measured by its return on investment.

Profit Centre

A profit centre is a distinct business unit or department within an organization that is responsible for generating its own revenue and managing its own costs to drive profitability.

Credit Sales

Sales made by a business where the amount is owed by the buyer for a period of time before payment is required.

Invoice Cost

The price for goods or services stated on an invoice, incorporating the cost of production or acquisition, but excluding additional expenses like shipping or taxes.