Question

Identify the keys to estimating an accurate amount of cash to be disbursed from the raw material purchases.

Answer 1

To estimate cash disbursement accurately, follow a systematic approach by determining the relevant information, identifying known and unknown quantities, and following the steps to analyze the problem.

Step-by-step explanation:

The keys to estimating an accurate amount of cash to be disbursed from the raw material purchases involve several steps.

1. Step 1: Determine the system of interest and identify what information is given and what quantity is to be calculated.
2. Step 2: Make a list of what quantities are given or can be inferred from the problem as stated (identify the known quantities).
3. Step 3: Identify exactly what needs to be determined in the problem (identify the unknown quantities).

By following these steps, you can systematically analyze the problem and gather the necessary information to estimate the cash disbursement accurately.