A Firm Whose Sales Volume Is Expanding Rapidly Need Not

question 26

True/False

A firm whose sales volume is expanding rapidly need not be concerned about managing its cash flow.

---

Definitions:

Computer Board

A printed circuit board used in a computer to which the processor, RAM, and other components are attached.

True Variable Cost

Costs that vary directly and proportionally with the level of production or activity within a business.

Fixed Cost

Expenses that do not change in total despite fluctuations in production or sales volume.

Mixed Cost

A cost consisting of both fixed and variable components and which is thus partially affected by changes in the level of activity.