The Sales/collection Process Is Important in Organizations Because

question 68

Multiple Choice

The sales/collection process is important in organizations because:

• A)Without it, an organization may soon cease to exist.
• B)It is the only method an organization has for generating cash flow.
• C)Both without it, an organization may soon cease to exist and it is the only method an organization has for generating cash flow.
• D)Neither without it, an organization may soon cease to exist nor it is the only method an organization has for generating cash flow.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, providing a more useful tool for performance evaluation.

Variable Costs

Costs that vary directly with the level of production or business activity. Examples include raw materials, packaging, and direct labor.

Fixed Costs

Fixed Costs are business expenses that remain constant regardless of the volume of goods or services produced, such as rent, salaries, and loan payments.

Favorable Volume Variance

A metric that indicates a company has produced or sold more than initially anticipated, leading to increased profitability.