Managers Use Cash Flow Predictions To

question 59

Multiple Choice

Managers use cash flow predictions to:

• A) Make decisions about acquiring new property,plant and equipment.
• B) Insource or outsource production of a product.
• C) Keep or eliminate a product line.
• D) Maintain or downsize a department.
• E) All of these answers are correct.

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Definitions:

Non-Value-Added Costs

Costs incurred during the production or delivery of a product or service that do not increase its market value, often a target for reduction or elimination in lean manufacturing.

Idle Time

The time period in which resources, such as machines or employees, are available but not in use or production.

Production Lead Time

The total time required to manufacture an item, including the wait, preparation, and processing times, from the beginning of production to the product’s completion.

Idle Time

The time period during which production resources are not being used effectively due to factors like machine breakdowns, inefficient scheduling, or lack of orders.