Figure 3-3 -Refer to Figure 3-3.Fred Would Incur an Opportunity Cost of an Opportunity

question 118

Multiple Choice

Figure 3-3

-Refer to Figure 3-3.Fred would incur an opportunity cost of 3 ballet slippers if he

• A)increased his production of tap shoes by 4.
• B)increased his production of tap shoes by 5.
• C)decreased his production of tap shoes by 4.
• D)increased the time he spends on the two activities from 40 hours to 50 hours.

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Definitions:

Slow-selling Merchandise

Items in inventory that move or sell at a slower pace than anticipated, often leading to excess stock and markdowns.

Cash Cycle

Refers to the amount of time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Selling Inventory

The process of selling goods and products that a company holds in stock, often a major revenue source.

Cash Cycle

The period between when a business pays for its inventory or services and when it receives payment for its products or services, effectively measuring the efficiency of its cash management.