Answered: SLO 1.1 Opportunity cost is a measure…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Related questions

Question

SLO 1.1 Opportunity cost is a measure of:

A) Inventory acquisition cost
B) Cost of services related to purchasing
C) Cost of operating expenses
D) Alternatives for invested funds
E) Activity based costs

SLO 1.2 ABC analysis provides insight into:

A) Total inventory costs
B) Average inventory costs
C) What items account for the most expenditures
D) What items are critical to avoid stock outs
E) High turnover items

Expert Solution

Step 1

The company will try to reduce the cost of the products so that the price of the product can be reduced. If the price of the product is reduced, then more number of customers will purchase the product and the profits of the company will increase. It will help the organization to sustain in the market for a long term. So the company will consider each and every cost that is incurred.