COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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How could a business improve its cash flow in the short term?
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By reducing costs such as reducing wages
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By producing less products
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By increasing staff bonuses and perks
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By increasing costs
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Explanation:
Detailed explanation-1: -If you have limited cash flow, one solution is to set up a line of credit. Like with a credit card, you’ll have money to spend that you can pay back during better months in your business cycle. Unlike a term loan, you’ll only pay what you use, along with interest on the outstanding balance.
Detailed explanation-2: -Ways to increase cash flow for a business include offering discounts for early payments, leasing not buying, improving inventory, conducting consumer credit checks, and using high-interest savings accounts.
Detailed explanation-3: -8 ways to improve cash flow: Cut unnecessary spending. Consider leasing instead of buying. Study your cash flow patterns. Maintain a cash flow forecast.
There is 1 question to complete.