A Project That Increased Sales Was Accompanied by a $50,000

question 83

Multiple Choice

A project that increased sales was accompanied by a $50,000 increase in inventory,a $20,000 increase in accounts receivable,and a $25,000 increase in accounts payable.Assuming these amounts remain constant,by how much has net working capital increased?

• A) $5,000
• B) $25,000
• C) $30,000
• D) $45,000

Understand the implications of changes in interest rates on bond prices and payments.

Understand experimental research design and methodology, including random assignment and manipulation of variables.

Distinguish between independent and dependent variables in experimental research.

Identify and control for confounding variables and understand their impact on research validity.

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Definitions:

Material Inventory

Stocks of raw materials, work-in-progress, and finished goods that a company holds at any given time to ensure smooth production and sales.

Material Price Variance

The variance that arises when the actual price paid for materials differs from the standard or expected price, affecting production costs.

Fixed Contract Price

A predetermined and agreed-upon amount that will be paid for the delivery of goods or services under a contract, regardless of changes in costs or expenses.

Labour Efficiency Variance

Labour efficiency variance is the difference between the actual hours of labor consumed to produce a good or service and the standard hours expected, measured to assess productivity performance.