One of the Issues of Measuring Benefits in Developing Countries

question 19

Multiple Choice

One of the issues of measuring benefits in developing countries is that the willingness to pay requires

• A)the use of an estimated discount rate.
• B)ability to pay.
• C)understanding peoples' tastes and preferences
• D)none of the above

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Definitions:

Tied-up Funds

Money that is currently invested, in use, or otherwise not readily available for free spending or other investment opportunities.

Lost Sales

Potential sales that were not realized due to stock shortages, inadequate service, or other operational issues.

Retail Method

An accounting method used to estimate inventory value by applying a cost-to-retail price ratio, based on the beginning inventory plus purchases, less the sales at retail.

Inventory Costing

The method used to value and account for inventory, including costs of purchase, production, and conversion.