Unicorn Medical Devices Is Developing a New Technology

question 50

Multiple Choice

Unicorn Medical Devices is developing a new technology.After initial development of the device,the company must test it.If the tests go well and the device is successful,it can be marketed immediately.If the tests do not go well,Unicorn will revise the original device and repeat the process.The outcome of the tests is on a(n) ________ node in a decision tree.

• A)decision node
• B)information node
• C)either node;it does not matter
• D)This question cannot be answered without a graphical representation of the decision tree.

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Definitions:

Days In Inventory

A financial ratio indicating the average number of days the company takes to turn its inventory into sales.

Gross Profit

The difference between revenue generated from goods or services sold and the cost of those goods or services sold, not accounting for other operating expenses.

Beginning Inventory

The value of inventory held by a company at the start of an accounting period, used to calculate cost of goods sold during the period.

Ending Inventory

The total value of all goods available for sale at the end of an accounting period, reflecting purchases and sales within that period.