If a Manager Builds Slack into a Budget, How Would

question 88

Multiple Choice

If a manager builds slack into a budget, how would that manager handle estimates of revenues and expenses?

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D
• E) Choice E

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Definitions:

COGS

Cost of Goods Sold; the direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Cash Cycle

The cash cycle is the period between the purchase of inventory and the collection of receivables from the sale of that inventory.

Receivables Period

The usual period a business needs to obtain payments from customers for goods or services sold on a credit basis.