Question

The operating cash flow of a cost-cutting project: Group of answer choices
- can be positive even though there are no sales.
- is equal to the depreciation tax shield.
- is equal to zero because there is no incremental sales.
- can only be analyzed by projecting the sales and costs for a firm's entire operations.
- includes any changes that occur in the current accounts.

Answer 1

Answer:

can only be analyzed by projecting the sales and costs for a firm's entire operations.

Explanation:

To be able to effectively cut costs, an analysis of a company's sales and operating costs must be performed. In a cost-cutting situation, financial control will be an important predictor of competitive advantage, as the more detailed sales and cost projection and analysis, the more information the company will have to control inputs and outputs and design strategies that will assist. on long-term organizational success.