Throughput Is Calculated as

question 62

Multiple Choice

Throughput is calculated as

• A)Sales revenue - Unit-level variable cost.
• B)Sales revenue - Total manufacturing cost.
• C)Unit-level cost + Batch-level cost + Facilities-level cost.
• D)Unit-level cost + Nonunit-level cost.

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Definitions:

Equivalent Annual Annuity

A financial calculus method for comparing the annualized cash flows of projects with different lifespans.

Initial Outlays

The initial investments or costs incurred when starting a project, business, or investment.

Net Present Value

A financial measure that assesses an investment's profitability by calculating the difference between the present value of cash inflows and the present value of cash outflows throughout a certain timeframe.

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.