As Per the Risk and Return Evaluation Matrix for Six

question 15

Multiple Choice

As per the Risk and Return evaluation matrix for Six Sigma projects,projects that are low hanging fruit have a

• A)low risk factor and low return factor.
• B)high risk factor and low return factor.
• C)low risk factor and high return factor.
• D)high risk factor and high return factor.

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Definitions:

Inventory Valuation

The method used to assign cost to inventory for the purposes of accounting, vital for determining cost of goods sold and ending inventory values.

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal, used in assessing the value of inventory and receivables.

Replacement Cost

The cost to replace an asset or item at current market prices, without deduction for depreciation.

Periodic Inventory System

An inventory accounting system where the inventory balance is updated at the end of the accounting period through a physical count.