The Center-Of-Gravity Method Does Not Take into Consideration the

question 104

Multiple Choice

The center-of-gravity method does not take into consideration the

• A) location of markets
• B) volume of goods shipped to the markets
• C) value of the goods shipped
• D) combination of volume and distance
• E) center-of-gravity method considers none of the above

Learn how to apply mathematical operations and functions in query criteria and calculations.

Understand the basic principles of accounting information systems.

Recognize the importance and role of input devices and source documents in accounting systems.

Identify the use and purpose of various journals and ledgers in accounting systems.

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Definitions:

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis; also refers to the interest rate charged by central banks on loans to commercial banks.

Cash Flows

The complete sum of cash inflows and outflows within a corporation, severely impacting its liquidity stance.

Present Value

The present-day financial assessment of a sum of money to be received later or a series of cash flows, based on a specific rate of return.

Discount Rate

In discounted cash flow analysis, the Discount Rate refers to the interest rate employed to ascertain the present value of future cash flows.