The most important variable in determining cash flow and the variable that affects most other cash flow variable is:

Question

Quizplus · Accepted Answer

The number of units of product predicted to be sold is the most important variable in determining cash flow as it directly impacts revenue, which is a significant factor in cash inflow. It also affects other variables such as production costs, inventory levels, and accounts receivable. Factors like the price of the units or the number of units sold in the previous period may also impact cash flow, but they are not as critical as the number of units predicted to be sold. The average number of units sold in the last year may provide helpful insights for forecasting, but it is not as relevant as the current prediction for future sales.

The Most Important Variable in Determining Cash Flow and the Variable