If a Project Has a B/C Ratio of 0

question 4

True/False

If a project has a B/C ratio of 0.9, its approval will result in net benefits to citizens of the nation.

---

Definitions:

Work-In-Process Inventory

The cost of unfinished goods in the manufacturing process including labor, material, and overhead.

Total Manufacturing Cost

The aggregate cost of direct materials, direct labor, and manufacturing overhead utilized in producing goods within a reporting period.

Direct Labor Costs

Expenses associated with the labor directly involved in the production of goods or provision of services.

Raw Materials Costs

The expenses associated with acquiring raw materials required to manufacture a product.