Which of the Following Statements Is True

question 51

Multiple Choice

Which of the following statements is true?

• A) Investment subtracts from the natural resource base and depreciation adds to it.
• B) Investment adds to the natural resource base and depreciation reduces it.
• C) Investment and depreciation add to the capital stock.
• D) Investment adds to capital stock and depreciation reduces it.

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Definitions:

Capacity

Refers to the maximum level of output that a company can sustain to make a product or provide a service.

Inventory

The goods and materials a business holds for the ultimate goal of resale or production.

Backlog Costs

Expenses associated with delays in order fulfillment, including storage, labor, and potential sales loss costs, when demand exceeds production capacity.

Linear Programming

A mathematical method used to determine the best possible outcome or solution from a given set of parameters or requirements, subject to certain constraints.