In a Traditional Enterprise, the Flow of Costs Through the System

question 132

Multiple Choice

In a traditional enterprise, the flow of costs through the system is

• A)materials inventory, work-in-process inventory, finished goods inventory, cost of goods sold.
• B)materials inventory, work-in-process inventory, cost of goods sold, finished goods inventory.
• C)work-in-process inventory, materials inventory, finished goods inventory, cost of goods sold.
• D)work-in-process inventory, materials inventory, finished goods.

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Definitions:

Disbursements

Money paid out by a business or organization for various purposes, including operating expenses, investments, and dividends.

Fixed Cost

Costs that do not fluctuate with changes in production level or sales volume, such as rent or salaries.

Miller-Orr Model

A financial model used to manage cash flows and determine optimal cash reserves for a company.

Monthly Disburses

This refers to the process of distributing or paying out funds at regular monthly intervals.