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

Question

Quizplus · Accepted Answer

Cash flow predictions are crucial for managers to make informed decisions about the future of their organization. They are used to determine the feasibility of acquiring new property, plant and equipment, as well as to assess whether to insource or outsource production of a product. Managers also rely on cash flow predictions to make decisions about whether to keep or eliminate a product line, and whether to maintain or downsize a department. Therefore, all of these options are important uses of cash flow predictions.

Managers Use Cash Flow Predictions to