Which of the Statements Below Is TRUE

question 99

Multiple Choice

Which of the statements below is TRUE?

• A)Cash collections are closely tied to the sales forecast as the sales forecasts are typically used for scheduling production.
• B)Financing costs include the wages paid to workers,the raw materials for manufacturing products,the overhead (such as electricity,water,plant space,and so on),and the shipping costs that get the product to the customer.
• C)Once all the expenditures and receipts are determined,a financial manager can determine the exact cash excess or cash shortfall in upcoming periods.
• D)It is the timing and the amount of cash outflow from production that is important to the financial manager and estimating this amount is part of the cash forecasting process.

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Definitions:

Accounts Receivable

Funds that customers owe to a company for products or services that have been provided but remain unpaid.

Sales Trend

The analysis of sales data over a period of time to identify patterns, growth, or declines in sales performance.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including material, labor, and overhead costs.

Horizontal Analysis

An analytical technique in accounting that compares financial data over multiple periods to detect trends and changes.