Which of the statements below is FALSE?
A)The ultimate goal of cash management is to have sufficient cash on hand to meet business obligations in a timely and appropriate manner.
B)Although the cash-management process will usually start with inventory forecasting,managers will look at the "final product" first to get an idea of where the company is ultimately heading and why it needs to look at sales forecasts and production schedules.
C)The cash forecast is the analytical tool that estimates the future timing of cash inflow and that projects potential shortfalls and excess.
D)The amount of inventory can be changed with the next order if a product's sales are faster or slower than originally anticipated.

Question

Quizplus · Accepted Answer

The statement that managers will look at the "final product" first to get an idea of where the company is ultimately heading and why it needs to look at sales forecasts and production schedules is false. The cash-management process typically starts with sales forecasting, followed by production scheduling and inventory management.

Which of the Statements Below Is FALSE