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'From an accounting perspective, added value is total XXXXXX minus total costs of all activities'.
Which word is missing?
Suggested Answer: C
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The Economic Order Quantity is a formula which attempts to calculate the most efficient quantity to order at any given time, by attempting to reconcile the cost of stockholding and the cost of plac-ing an order. This could then have implications for the timing of an order being placed.
The cost of holding stock can be reasonably accurately calculated and agreed with one's peers. However, determining the cost of placing an order can keep colleagues up late into the night, and can be a great topic to liven up a sleepy procurement / finance function.
45 comments · newest first
SU
Suzan
11 months ago
"Savings" doesn't fit at all, right?
MA
Marguerita
11 months ago
I thought it was "Expenditure" at first.
SH
Shoshana
12 months ago
Wait, could it be "Costs"? That sounds off.
LA
Lachelle
12 months ago
Agreed, "Revenue" makes the most sense here.
AN
Anissa
1 year ago
It's definitely "Revenue."
JE
Jesusa
1 year ago
I thought "Expenditure" could work too, but it seems less common in this context.
JU
Jules
1 year ago
I practiced a similar question, and I feel like "Revenue" fits best, but I could be wrong.
GE
Georgiana
1 year ago
I'm not entirely sure, but I remember something about costs being subtracted from total income. Could it be "Costs"?
VA
Valentine
1 year ago
I think the missing word might be "Revenue," since added value usually relates to what you earn.
CU
Curtis
1 year ago
I've got this! The missing word is definitely "revenue". Added value is calculated by subtracting total costs from total revenue. Easy peasy!
LE
Lea
1 year ago
Ah, this is a tricky one. I'm a bit confused between "revenue" and "expenditure" as the possible answers. I'll need to review the concepts of added value and how it's calculated.
PA
Pamella
1 year ago
Okay, let me see. From the definition, added value is total something minus total costs. I'm leaning towards "revenue" as the missing word, but I want to double-check my understanding.
MI
Ming
1 year ago
Hmm, I'm not 100% sure about this one. I think the missing word could be "revenue" or "expenditure". I'll have to think it through carefully.
CH
Charlena
1 year ago
This one seems pretty straightforward. The missing word is clearly "revenue" since added value is calculated by subtracting total costs from total revenue.
JA
Janessa
1 year ago
Okay, I think I've got it. Based on the details provided, this has to be Twofish. I'm confident that's the right answer.
LI
Lisbeth
1 year ago
Hmm, I'm not sure about this one. I know we need to modify some configuration files, but I can't remember which ones exactly. I'll have to think this through carefully.
EL
Elbert
1 year ago
Okay, let me break this down. The key things to consider in audit planning are gathering background information, determining resources, and developing relevant audit criteria. I think option D covers those main areas.
GA
Gabriele
1 year ago
I'm a bit unsure on this one. I know the IETF is involved in internet standards, but I can't recall if they specifically became the standards body for IP. I'll have to think it through.
RO
Rodolfo
1 year ago
Costs, revenue, who cares? As long as the final answer is a number, I'll be happy. Where's the multiple-choice option for 'whatever works'?
XU
Xuan
1 year ago
Costs, revenue, who cares? As long as the final answer is a number, I'll be happy. Where's the multiple-choice option for 'whatever works'?
RO
Rosalyn
1 year ago
D) Revenue
AM
Amber
1 year ago
C) Savings
ZE
Zena
1 year ago
B) Expenditure
RE
Ressie
1 year ago
A) Costs
MA
Marjory
2 years ago
I'm going with A) Costs. Subtracting total costs from total revenue is how you get added value, isn't it?
BE
Benedict
1 year ago
A) Costs is the missing word, good choice!
DE
Detra
1 year ago
That's right, subtracting costs from revenue gives you added value.
LA
Laurel
1 year ago
Yes, you're correct. It's A) Costs.
SY
Sylvia
2 years ago
Gotta be D) Revenue. I mean, who cares about costs or savings when you're trying to calculate added value? Show me the money!
CA
Catarina
1 year ago
I agree with you, it's D) Revenue. That's the key factor in determining added value.
LI
Lillian
1 year ago
I see your point, but I still think it's A) Costs. You have to consider all expenses.
VI
Vi
1 year ago
No way, it's definitely D) Revenue. That's the total income you're generating.
SH
Shannan
2 years ago
I think it's A) Costs. You need to subtract costs to calculate added value.
AN
Anglea
2 years ago
D) Revenue makes the most sense to me. Can't have added value without revenue, right?
IO
Iola
1 year ago
D) Revenue makes the most sense to me. Can't have added value without revenue, right?
FA
Fabiola
2 years ago
A) Costs
BL
Blondell
2 years ago
Hmm, I was leaning towards B) Expenditure, but now I'm not so sure. This is a tricky one.
LI
Lilli
2 years ago
I agree with Ahmed, A) Costs makes the most sense in this context.
AH
Ahmed
2 years ago
I think it's A) Costs because added value is calculated by subtracting costs from total revenue.
LA
Launa
2 years ago
I think it's D) Revenue. That's the classic definition of added value in accounting.
PA
Pamella
1 year ago
Yes, you're right. Added value is total revenue minus total costs of all activities.
LO
Lonna
1 year ago
Is it A) Costs? That would make sense in the context of the equation.
CL
Clare
2 years ago
No, it's not revenue. Think about the equation again.
BE
Benedict
2 years ago
I think it's D) Revenue. That's the classic definition of added value in accounting.
SL
Slyvia
2 years ago
A) Costs