New Normal University Has Found It Necessary to Institute a Crime-Control

question 97

Multiple Choice

New Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism. The university is now considering several alternative levels of crime control. This table shows the expected total annual costs and benefits of these alternatives. If New Normal University undertakes program Level Three,

• A)total benefits will be less than total costs.
• B)marginal costs will exceed marginal benefits.
• C)there would be an underallocation of resources to crime control.
• D)there would be an overallocation of resources to crime control.

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Definitions:

Net Working Capital

measures a company's short-term financial health by subtracting its current liabilities from its current assets, indicating the liquidity available to fund day-to-day operations.

Accounts Receivable

Unsettled financial obligations to a corporation from its customers for products or services already delivered or engaged in, awaiting payment.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company’s balance sheet.

Just-in-time

An inventory strategy companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.