Which term is defined as the net flow of dollars into or out of a proposed project, the algebraic sum of all cash receipts, expenses, and investments in a given period?

• A. Carrying cost
• B. Capable-2-promise
• C. Cash flow
• D. Cause-and-effect diagram

Answer: (C)

Cash flow is the net flow of dollars into or out of a proposed project; it's the algebraic sum of all cash receipts, expenses, and investments in a given period. This captures the actual cash movements over time, including initial outlays and subsequent inflows and outlays, and it can be positive or negative. Positive cash flow indicates the project provides more cash than it spends in that period, which is essential for assessing feasibility and funding needs, and it underpins valuation methods like net present value and IRR. The other terms don’t describe this cash movement: carrying cost relates to the expense of holding inventory, capable-to-promise is a production-planning term, and a cause-and-effect diagram is a quality tool used for root-cause analysis.