An Item Described as Low-Risk and Low-Opportunity Is a ________

question 36

Multiple Choice

An item described as low-risk and low-opportunity is a ________.

• A) nuisance item
• B) bottleneck item
• C) variable item
• D) critical item
• E) commodity

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up over time.

Cash Break-Even

The point at which a business's cash inflows exactly match its cash outflows, exclusive of financing, indicating no net cash gain or loss.

Straight-Line Depreciation

A tactic for apportioning the cost of a physical asset over its effective lifespan in identical yearly expenditures.

Fixed Costs

Expenses that do not change with the level of goods or services produced over a short period.