If We Assume for Forecasting Purposes That the fiRm's fiXed

question 277

Multiple Choice

If we assume for forecasting purposes that the firm's fixed assets will increase directly with sales, we are effectively assuming that the firm:

• A) Has no unused capacity in its fixed assets.
• B) Is currently utilizing its current assets at 100%.
• C) Is producing more goods than it sells.
• D) Has no excess working capital.
• E) Can increase production without any external financing needed.

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