A College Student Wants to Purchase One of Two Stocks

question 45

Essay

A college student wants to purchase one of two stocks. She has the average annual high values for each of these stocks over the most recent ten-year period. For comparison, she decides to sketch a time-series graph. How should she prepare her graph, and what should she look for?

---

Definitions:

Raw Materials Purchases

Refers to the total cost incurred by a company for the acquisition of raw materials needed for production during a specific period.

Operating Expenses

Costs incurred during the normal operations of a business, excluding the costs of goods sold.

Just-In-Time Method

A production and inventory strategy that aims to reduce costs by receiving goods only as they are needed in the production process, minimizing inventory levels.

Inventory Levels

Inventory levels refer to the amount of goods or materials a company holds for the purpose of resale or production.