New Normal University Has Found It Necessary to Institute a Crime-Control

question 62

Multiple Choice

New Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism. The university is now considering several alternative levels of crime control. This table shows the expected total annual costs and benefits of these alternatives. The marginal benefits of crime control for Level Two are

• A) $ 90,000.
• B) $40,000.
• C) $ 60,000.
• D) $200,000.

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Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.

Days In Inventory

A financial measure indicating the average number of days a company holds inventory before selling it, reflecting inventory management efficiency.

Increases

Refers to situations where numerical values, such as revenues, profits, or assets, go up or become larger.

Inventory Turnover Ratio

A measure of how many times a company sells and replaces its inventory over a certain period, indicating efficiency in managing stock levels.