Which of the Following Would Not Affect an Individual's Demand

question 90

Multiple Choice

Which of the following would not affect an individual's demand?

• A) Prices of related goods
• B) The individual's preferences
• C) The individual's income
• D) The costs of inputs

Understand the limitations and applications of the payback period method in capital budgeting.

Calculate and interpret the average accounting return (AAR) for project assessment.

Evaluate projects using the discounted payback rule.

Apply the concept of profitability index (PI) in project selection under capital rationing.

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Definitions:

Replenishment

The process of restocking products or materials to maintain inventory levels and meet demand.

Internal Control Principles

Guidelines that govern the design and implementation of systems and procedures to ensure asset protection, data accuracy, and operational efficiency.

Possible Errors

Mistakes or inaccuracies that might occur in the recording or reporting of financial transactions.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement.