_____ Occurs When a Work Center Completes a Unit but Cannot

question 91

Multiple Choice

_____ occurs when a work center completes a unit but cannot release it because the in-process storage at the next stage is full.

• A) Lack-of-work delay
• B) Propagation delay
• C) Flow-blocking delay
• D) Overload delay

---

Definitions:

Outstanding Cheques

Cheques issued by a company that have not been deposited or cashed by the recipient by the end of the accounting period.

Liquidity

The ease with which an asset can be converted into cash without significantly affecting its price, reflecting the ability of a company or individual to meet immediate and short-term obligations.

Precautionary Motive

The desire to hold cash or other liquid assets to meet unexpected needs and financial emergencies.

Financial Slack

The availability of excess funds or resources in a company that allows for flexibility in operations, strategic investments, or weathering financial uncertainties without immediate financial stress.