Refer to the Information Provided in Table 23

question 254

Multiple Choice

Refer to the information provided in Table 23.6 below to answer the question(s) that follow.
Table 23.6
A Hypothetical Investment Schedule
-Refer to Table 23.6. If the interest rate dropped from 15% to 6%, planned investment would ________ by $________ billion.

• A) increase; 90
• B) increase; 270
• C) decrease; 90
• D) decrease; 270

---

Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Net Realizable Value

The estimated selling price in the ordinary course of business, minus the estimated costs necessary to make the sale.

Inventory Purposes

The reasons for keeping stock of goods in a business, typically for sale, production, or avoiding stockouts.

Direct Costs

Expenses that can be directly traced to a product or service, such as materials and labor.