The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as ____________?

Related Mcqs:

1. An investment of money in idle inventory, in place of investing the same amount of money somewhere else is an example of ___________?

   A. offshore cost
   B. outsource cost
   C. in-source cost
   D. opportunity cost

2. The sum of beginning work in process inventory units and started units, is subtracted from the sum of ending work in process inventory units and transferred out units of goods, to calculate ____________?

   A. Gross weighted spoilage
   B. inventoriable spoilage
   C. partial spoilage
   D. total spoilage

3. The forgone contribution of resources, into the revenues because of not using the resources, in next best use is classified as __________?

   A. in-source cost
   B. opportunity cost
   C. offshore cost
   D. outsource cost

4. If the net initial investment is $985000, returned working capital is $7500, then an average investment over five years will be ___________?

   A. $596,300
   B. $485,300
   C. $496,250
   D. $486,250

5. If the total sales are $250000, the beginning inventory is $25000 and the ending inventory is $25000, then total production would be ________?

   A. $250,000
   B. $350,000
   C. $300,000
   D. $400,000

6. If the total sales are $355000, the beginning inventory is $23000 and the ending inventory is $15000, then total production would be _________?

   A. $363,000
   B. $463,000
   C. $393,000
   D. $493,000

7. If the budget sales units are 5000, the ending inventory is 4000 units and the beginning inventory is 1000, then the budget production will be __________?

   A. 4000 units
   B. 5000 units
   C. 8000 units
   D. 10000 units

8. If the budget sales units are 2000, an ending inventory is 3000 units and the beginning inventory is 1000, then the budget production would be ______________?

   A. 6000 units
   B. 4000 units
   C. no units
   D. 8000 units

9. If the budget sales units are 8000, the ending inventory is 2000 units and the beginning inventory is 3000, then the budget production would be ___________?

   A. 11000 units
   B. 13000 units
   C. 10000 units
   D. 7000 units

10. The budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to ___________?

    A. budget production
    B. planned production
    C. setup production
    D. stand by production