"Mr Stone, I Must Say You Are Making a Mistake

question 40

Multiple Choice

"Mr. Stone, I must say you are making a mistake. I know you have spent $6,000 on research and development to develop this project, but that money must not be used as a negative cash flow of the project." Apparently, Mr. Stone does not understand the concept of:

• A)side-effect costs.
• B)opportunity costs.
• C)sunk costs.
• D)variable costs.
• E)depreciation not taken.

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Definitions:

Operations Management

A field of management that deals with designing, controlling, and redesigning business operations in the production of goods or services.

Ethical Challenges

Moral dilemmas and issues that arise in the practice of business and professional activities, requiring deliberation and decision-making.

Social Challenges

Issues that affect individuals or communities, related to inequality, health, education, and access to resources, requiring collective action for resolution.

Operations-Related Tasks

Activities and duties associated with managing and improving the processes that produce goods or deliver services in an organization.