1) When most of the elements of a financial plan are ...



1) When most of the elements of a financial plan are related to sales levels, the plan is:

a)less likely to be effective

b)using sales as a plug figure

c) a percentage of sales model

d) not adjusted for inflation

2) Which of the following would not be included in the amount the cost of carrying inventory?

a)Obsolescence

b)Opportunity cost of capital

c) Raw material cost

d) Risk of pilferage

3) When financial managers take action to minimize the carrying costs of current assets, they:

a)are likely to maximize profits

b)also consider spoilage costs

c)may increase costs due to shortages

d)engage in the matching of maturities.

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