Which of the Following Is Generally the Lowest Among Small

question 69

Multiple Choice

Which of the following is generally the lowest among small Australian companies as well as from large US companies (2001) ?

• A)NPV
• B)IRR
• C)DPP
• D)PI

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Definitions:

Total Cost

The sum of all costs incurred in the production of goods or services, including fixed and variable costs.

Fixed Cost

A cost that does not change with the level of output or sales, such as rent, salaries, and insurance.

Insurance Premiums

The amount of money that an individual or business must pay for an insurance policy.

Law of Diminishing Returns

The principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.