Polyton Fabrics Uses a Variety of Raw Materials Such as Cotton

question 96

Multiple Choice

Polyton Fabrics uses a variety of raw materials such as cotton, polyester, and clothing dye while manufacturing clothes. In the context of operations management, the raw materials used by Polyton Fabrics are its _____.

• A) throughput
• B) information systems
• C) contingency systems
• D) inventory

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Definitions:

Operating Cash Flows

Cash generated from a company's normal business operations, indicating its ability to generate enough cash to maintain or expand operations.

Sunk Cost

Expenses that have been paid and cannot be retrieved, and therefore, should not impact upcoming business strategies.

Opportunity Cost

The benefit foregone by choosing one alternative over another.

Financing Costs

Expenses incurred by an entity in borrowing funds, including interest, fees, and other charges associated with the issuance of debt.