Which of the Following Is an Implicit Cost of an Illegal

question 49

Multiple Choice

Which of the following is an implicit cost of an illegal marijuana growing operation?

• A)Foregone income due to time spent managing the operation
• B)Lost time if the manager is caught
• C)Lost liberty if the manager is jailed
• D)The value of the time spent avoiding detection
• E)All of the above

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Definitions:

Inventory Turnover

Inventory Turnover is a ratio that shows how many times a company's inventory is sold and replaced over a period of time, indicating the efficiency of inventory management.

Average Collection Period

The average time it takes for a business to receive payments owed by its customers, indicating the efficiency of the company's credit and collection policies.

Sales on Account

Transactions where goods or services are sold with the understanding that payment will be made at a later date.

Ending Accounts Receivable

The amount owing to a business for merchandise or services sold on credit at the end of an accounting period.