Which of the Following Is NOT an Example of Private

question 101

Multiple Choice

Which of the following is NOT an example of private investment expenditure?

• A) new plants and equipment added during the year
• B) new houses built during the year
• C) using credit cards to purchase durable and nondurable goods
• D) increases in inventories on goods produced during the year

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Definitions:

CVP Graph

A visual representation of the Cost-Volume-Profit analysis, illustrating the relationship between costs (both variable and fixed), volume of production, and the resulting profit or loss.

Management

The process of dealing with or controlling things or people within an organization.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced in a business.

Fixed Costs

Costs that do not vary with the level of production or business activity, such as rent or salaries.