An investment of money in idle inventory, in place of investing same amount of money somewhere else is an example of

A offshore cost
B outsource cost
C in-source cost
D opportunity cost

Correct Answer: opportunity cost

An investment of money in idle inventory, in place of investing same amount of money somewhere else is an example of opportunity cost. Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another.
Bissoy MCQ
#Management #Management Accounting

Related Questions

Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as
A relevant purchase order costs
B relevant inventory carrying costs
C irrelevant inventory carrying costs
D relevant opportunity cost of capital
Carlos Company had Beginning inventory of TA. 80,000, ending inventory of TA. 110,000 cost of goods sold of TA. 285,000 and sales of TK 475. 000 Carlos's days in inventory is:
A 73 days
B 102.5 days
C 121.7 days
D 84.5 days
Carlos Company had beginning inventory of TA, 80,000 ending inventory of TA. 110,000, cost of goods sold of TA. 285,000, and sales of TK. 475,000. Carlos's days in inventory is
A 72 days
B 102.5 days
C 121.7 days
D 84.5 days
একটি মজুত পণ্যের ক্রয়মূল্য ১৫,৫০০ টাকা ও বাজার মূল্য ১২,৫০০ টাকা, যা বছর শেষে মজুত পণ্যের গণনা থেকে বাদ পড়ে গেছে। এই মজুত পণ্যটি সঠিকভাবে হিসাবভুক্ত হলে ব্যবসার মুনাফার ওপর বিরূপ প্রভাব ফেলবে? (An inventory having cost price and market price of Tk. 15,500 and Tk. 12,500 respectively has been omitted while counting the inventory at the year end. What would be the effect on business profit, if this inventory is properly accounted for?)
A মুনাফা ১৫,৫০০ টাকা কমবে। (Decrease of profit by Tk. 15,500)
B মুনাফা ৩,০০০ টাকা কমবে। (Decrease of profit by Tk. 3,000)
C মুনাফা ৩,০০০ টাকা বাড়বে। (Increase of profit by Tk. 3,000)
D মুনাফা ১২,৫০০ টাকা বাড়বে। (Increase of profit by Tk. 12,500)
A and B started a business jointly. A's investment was thrice the investment of B and the period of his investment was two times the period of investment of B. If B received Tk. 4000 as profit, then their total profit is :
A Tk. 16,000
B Tk. 20,000
C Tk. 24,000
D Tk. 28,000
Given figures showing : Sales Taka 8,200, Opening inventory Taka 1,300, Closing inventory Taka 900, Purchases Taka 6+,400, Carriage inwards Taka 200, the cost of goods sold figure is :
A Taka 6800
B Taka 6200
C Taka 7800
D Taka 7000
Blue Sky Company began the year with a balance in inventory of TK. 110,000 and ended the year with a balance of Tk. 102,000. The net sales for the year were Tk. 983,000 with a gross profit on sales of Tk. 295,000. What was the inventory turnover ratio ?
A 2.78 times
B 9.27 times
C 6.49 times
D 2.89 times
If Total Sales is Tk. 8,00,000 Profit Margin is 20% on Sales and Average Inventory is 1,00,000 then what is the Inventory Turnover Ratio?
A 6.4
B 6
C 8
D 7.4
If total Sales Tk. 8,00,000. Profit Margin is 20% on Sales and Average Inventory is1,00,000 then which of the following is the Inventory Turnoover Ratio?
A 6.4
B 6
C 8
D 7.4
রংধনু সু স্টোরের প্রারম্ভিক মজুদপণ্যের জের ২৫,০০০ টাকা। উক্ত হিসাবকালে ক্রয় ৫০,০০০ টাকা, অন্য ফেরত ২,৫০০ টাকা ও আত্মপরিবহণ ব্যয় ১৫,০০০ টাকা ছিল। হিসাব শেষে গণনার পর দেখা যায় ২০,০০০ টাকার পণ্য এখনও হাতে আছে। বিক্রয়যোগ্য পণ্যের ব্যয়ের পরিমাণ ছিল ___। (Rangdhanu Shoe Store had a beginning merchandise inventory of Tk. 25,000. During the period, purchases were of Tk. 50,000, purchase returns were of Tk. 2,500 and freight-in was of Tk. 15,000. A physical count of inventory at the end of period revealed that Tk. 20,000 was still on hand. The cost of goods available for sale was __.
A ৪২,৫০০ টাকা (Tk. 42,500)
B ৫২,৫০০ টাকা (Tk. 52,500)
C ৬৭,৫০০ টাকা (Tk. 67,500)
D ৮৭,৫০০ টাকা (Tk. 87,500)

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