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 answers are correct.

Question

Quizplus · Accepted Answer

All of the given options are correct as cash flow predictions are useful in all of these decisions. By predicting the cash inflows and outflows, managers can make informed decisions about investments, production, and expenses related to different departments or product lines. This helps them allocate resources more efficiently and make decisions that are beneficial for the overall financial health of the organization.

Managers Use Cash Flow Predictions To