Which of the Following Questions Are Addressed by Financial Managers

question 18

Multiple Choice

Which of the following questions are addressed by financial managers?
I.How should a product be marketed?
II.Should customers be given 30 or 45 days to pay for their credit purchases?
III.Should the firm borrow more money?
IV.Should the firm acquire new equipment?

• A)I and IV only
• B)II and III only
• C)I, II, and III only
• D)II, III, and IV only
• E)I, II, III, and IV

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Definitions:

Direct Materials

Components that are directly associated with the creation of a specific product.

Direct Labor

The labor costs directly attributable to the production of goods or services, which includes wages paid to workers who physically produce the product.

Manufacturing Overhead

All costs related to the production process that are not direct materials or direct labor, known as indirect expenses.

Period Costs

Expenses that are not directly tied to production activity and are expensed in the period they are incurred.