A Company Has Four Departments (A, B, C and D)

question 32

Multiple Choice

A company has four departments (A, B, C and D) and the net sales are $30,000; $35,000; $60,000 and $20,000 respectively. The cost of goods sold per department is $25,000; $15,000; $10,000 and $15,000 respectively. What department has the highest dollar gross profit?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Human Capital

Human capital refers to the collective skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Productivity

The efficiency with which input resources are converted into outputs, often measured as the amount of output produced per unit of input.

Discount Rate

The discount rate refers to the interest rate used in discounted cash flow analysis to determine the present value of future cash flows or to assess the attractiveness of an investment.

Net Present Value

The calculation used to find the present worth of a series of future cash flows by discounting them at a given interest rate, important for investment analysis.