This scenario describes a supply chain. A supply chain can be described as a complex sequence of commercial activities with the end goal of providing products and services for consumers. The aforementioned scenario demonstrates exactly this: a sequence starting at early T-shirt production and ending at the T-shirt being ready for sale.
Answer:
C. opportunity cost
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
For example, let us assume that Amanda leaves her job where she earns $250,000 to start a business where she earns $500,000. Her opportunity cost is $250,000 which is the salary she forgoes when she decided to start her business.
I hope my answer helps you
<span>Topics Reference Advisors Markets Simulator Academy</span> Profitability Index<span>By Investopedia</span><span> SHARE </span><span> </span><span> Chapter One Chapter Two Chapter Three Chapter Four Chapter Five </span><span>Chapter One Chapter Two Chapter Three Chapter Four Chapter Five</span><span><span>4.1 Net Present Value And Internal Rate Of Return4.2 Capital Investment Decisions4.3 Project Analysis And Valuation4.4 Capital Market History4.5 Return, Risk And The Security Market Line</span><span>4.1.1 Introduction To Net Present Value And Internal Rate Of Return4.1.2 Net Present Value4.1.3 Payback Rule4.1.4 Average Accounting Return4.1.5 Internal Rate Of Return4.1.6 Advantages And Disadvantages Of NPV and IRR4.1.7 Profitability Index4.1.8 Capital Budgeting</span></span>
A profitability index attempts to identify the relationship between the costs and benefits of a proposed project. The profitability index is calculated by dividing the present value of the project's future cash flows by the initial investment. A PI greater than 1.0 indicates that profitability is positive, while a PI of less than 1.0 indicates that the project will lose money. As values on the profitability index increase, so does the financial attractiveness of the proposed project.
The PI ratio is calculated as follows:
<span>PV of Future Cash Flows
</span>Initial Investment
A ratio of 1.0 is logically the lowest acceptable measure for the index. Any value lower than 1.0 would indicate that the project's PV is less than the initial investment, and the project should be rejected or abandoned. The profitability index rule states that the ratio must be greater than 1.0 for the project to proceed.
For example, a project with an initial investment of $1 million and present value of future cash flows of $1.2 million would have a profitability index of 1.2. Based on the profitability index rule, the project would proceed. Essentially, the PI tells us how much value we receive per dollar invested. In this example, each dollar invested yields $1.20.
The profitability index rule is a variation of the net present value (NPV) rule. In general, if NPV is positive, the profitability index would be greater than 1; if NPV is negative, the profitability index would be below 1. Thus, calculations of PI and NPV would both lead to the same decision regarding whether to proceed with or abandon a project.
However, the profitability index differs from NPV in one important respect: being a ratio, it ignores the scale of investment and provides no indication of the size of the actual cash flows.
The PI can also be thought of as turning a project's NPV into a percentage rate.
(Find some profitable ideas in <span>8 Ways To Make Money With Real Estate</span> and Outside The Box Ways To Get Money.)
Answer:
D) $115,000
Explanation:
beginning 5,000 at cost of $ 35,000
purchase 12,000 at $9 each = $ 108,000
total units available for sale 17,000
ending <u> (4,000) </u>
sold units: 13,000
Under LIFO we first sale the newest units those are the purchased ones.
we will sale the 12,000 purchased unit --> $108,000
13,000 - 12,000 = 1,000 there is still 1000 more unit to sale oso we take themfrom beginning inventory
and 1000 of the beginning inventory:
35,000 / 5,000 x 1,000 = 7,000
total cogs = 108,000 +7,000 = 115,000
