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The Snow Hut Has Analyzed the Carrying and Shortage Costs

Question 7

Multiple Choice

The Snow Hut has analyzed the carrying and shortage costs associated with its cash holdings and determined that the firm should ideally maintain a cash balance of $3,600.This $3,600 represents which one of the following to the firm?


A) target cash balance
B) concentration balance
C) available balance
D) selected cash amount
E) compensating balance

Correct Answer:

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