A Manager Buys 4 Cases of Fresh Green Beans at a Quoted

question 35

Multiple Choice

A manager buys 4 cases of fresh green beans at a quoted price of $18.50 per case. What should be the extended price of the green beans, as listed on the manager's purchase order?

• A) $18.50
• B) $37.00
• C) $54.50
• D) $74.00

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Definitions:

Depreciation

The gradual decrease in the economic value of the capital stock of a firm, nation, or other entity, either through physical wear and tear or obsolescence.

Net Investment

The total amount of investment in new capital assets minus the depreciation on existing assets, indicating growth in an economy's productive capacity.

Inventory Investment

The change in the stock of goods held by a business for resale or production over a period, part of the investment component in GDP calculation.

Depreciation

The method of spreading out the expense of a physical asset over its lifespan.