If Project X Has a Cost of $6 and Provides

question 54

Multiple Choice

If Project X has a cost of $6 and provides a benefit of $10 and Project Y has a cost of $25 and provides a benefit of $27,which of the following statements is true?

• A) An individual can optimize by choosing Project X.
• B) An individual can optimize by choosing Project Y.
• C) Switching from Project X to Project Y increases net benefit by $2.
• D) Switching from Project Y to Project X decreases net benefit by $2.

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Definitions:

Inventory Value

The total cost or market value of all the goods held by a company that are available for sale.

Cost Of Goods Sold

The immediate expenses associated with manufacturing the products a company sells, covering both materials and manpower.

Accounts Payable

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