Which of the Following Statements Is True About a Cash

question 50

Multiple Choice

Which of the following statements is true about a cash budget?

• A) A cash budget helps an entrepreneur understand the concept of EBITDA break-even and how to calculate this point for each product a business's produce.
• B) A cash budget focuses on the importance of maximizing a product's per-unit contribution.
• C) A cash budget provides a means of estimating how long it will take for a product to reach the break-even point and, therefore, how much money will be needed to launch a new product.
• D) A cash budget summarizes the cash flows into and out of a firm over a period of time.

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Definitions:

Governor Cutout

A mechanism or setting in engines and machinery that limits the maximum speed or output to prevent damage or conserve energy.

Psi

Pounds per square inch, a unit of pressure used to quantify internal pressure, stress, or tensile strength.

Decelerometer

Measures the change in angle of a chassis when it is subjected to aggressive braking. This angle is also known as load transfer, dynamic pitch.