Cash disbursements or ________ are closely tied to the sales forecast as the sales forecasts are typically used for scheduling production.

Question

Quizplus · Accepted Answer

Cash disbursements refer to the payments made by a company for its expenses such as salaries, rent, and supplies. These expenses are closely tied to the sales forecast as they are based on the expected level of sales. For example, if a company forecasts higher sales, it may need to purchase more inventory, which will increase its cash disbursements. Therefore, choice A (expenditures) is the best option.

Cash Disbursements or ________ Are Closely Tied to the Sales