Answer:
$312,000
Explanation:
Given that,
August Sales = $300,000
July sales = $330,000
Customer amounts on account are collected 60% in the month of sale and 40% in the following month.
Cash Receipts during August:
= (August Sales × 60%) + (July Sales × 40%)
= ($300,000 × 60%) + ($330,000 × 40%)
= $180,000 + $132,000
= $312,000
Therefore, the cash is budgeted to be received during August is $312,000.
Answer: Production orientation
Explanation: It refers to a strategy when the company focuses only to provide the best quality product in the market without taking into consideration the preference of the customers.
In the given case, Steel makers are focusing on making their business process the best in market so that they can gain a competitive advantage.
Thus, from the above we can conclude that the correct option is C.
Answer: Cost
Explanation:
Regression allows for us to be able to predict the cost of a certain level of production based on past costs and cost behavior.
It works by using the basic formula:
y = mx + c
Y = total cost
M = variable cost
x = volume of production
c = fixed cost
Using this graphical method, the cost of production can be estimated and is therefore very useful in capital budgeting.
