A "Backstop Resource" Is a Close Substitute for a Depletable

question 167

Multiple Choice

A "backstop resource" is a close substitute for a depletable resource that is available in almost unlimited supply but at a higher cost.Shale oil is a backstop resource for crude oil.Which of the following statements is correct?

• A)The production of shale oil is likely to increase over time even if crude oil is still available.
• B)Shale oil is unlikely to be produced until all the crude oil has been depleted.
• C)The existence of shale oil as a backstop resource will discourage firms from seeking new reserves of crude oil.
• D)In the future, shale oil is likely to be produced at the same time as crude oil and to sell for a lower price.

Calculate the inventory period based on sales and cost of goods sold data.

Understand the relationships and differences between inventory, receivables, and payables turnover rates on the operating cycle.

Assess the effects of changes in periods of receivables, inventory, and payables on the cash cycle.

Calculate the operating cycle and its components in various business scenarios.

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Definitions:

Short-hand Categorization

This term refers to the process of quickly grouping or classifying objects, ideas, or information based on observable characteristics or common traits, using simplified or abbreviated criteria.

Diagnoses and Assessments

The process of identifying a disease or condition based on a patient's symptoms and other information, followed by the evaluation of their needs and the best course of action.

Specifically Defined Criteria

The explicit and detailed standards used to judge or evaluate something.

Analyzed and Synthesized

Analyzed and Synthesized refers to the process of examining information or data critically to break down its components (analyzed) and then combining these components in different ways to form a coherent whole (synthesized).