The correct option is B - Opportunity Cost
<u>Explanation:</u>
Generally, an opportunity cost is the benefit that you gave up when you pass on that option in favor of another option. For instance, by choosing to purchase furniture instead of taking a vacation comes at the cost of not experiencing the relaxation and fun associated with a vacation. All options have opportunity costs (getting married instead of staying single, investing in school instead of retirement, etc).
Everyone should know that opportunity cost is a very important concept that doesn’t just have its application in economics; you can apply it to all aspects of your daily life. Whether you’re cooking, eating, playing soccer, going to the movies, or hitting the gym, so long as you’re breathing, evaluating the choices you’re presented with is an inevitability, whether conscious of it or not.
<u>Solution and Explanation:</u>
The following formula is used in order to calculate the days sales outstanding:
Days sales out standing = ( Accounts receivable divided by Sales ) multiply with 365
= $1.5 million divided by $12 million multiply with 365
After calculating we get, 45.625 days
<u>In order to calculate the capital released, the following formula is used:
</u>
= 513699
Therefore, the capital released is $513699
Answer:
1
Explanation:
If each doll shirt gets 5 buttons then only one can be finished with 5 buttons.
Answer:
45.62 days
Explanation:
For computing the average number of days receivables, first, we have to calculate the account receivable ratio. The formula is shown below:
Account receivable ratio = Net credit sales ÷ Average accounts receivable
where,
Average account receivable = (Beginning account receivable balance + ending account receivable balance) ÷ 2
Now put these values to the above formula
So, the answer would be equal to
= $480,000 ÷ ($40,000 + $80,000 ÷ 2)
= $480,000 ÷ $60,000
= 8 times
Now, the average level of receivables equals to
= Total number of days in a year ÷ Account receivable ratio
= 365 days ÷ 8
= 45.62 days
<span>Corporate Social Responsibility (CSR) can be described as an approach of business that contributes to continuous development of business by providing/delivering economic, environmental and social benefits to all the stakeholders of the company. CSR means that a corporation should take accountability of its actions on people, community and the environment in which it exists.</span>
