At Equilibrium Expenditure, Unplanned Changes in Inventory

question 75

Multiple Choice

At equilibrium expenditure, unplanned changes in inventory

• A) must be positive.
• B) must be zero.
• C) must be negative.
• D) might be either positive or negative.

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Definitions:

Net Present Value

A calculation used to assess the profitability of an investment, considering the present value of its future cash flows minus the initial investment.

Payback Period

The duration necessary to regain the investment's cost.

Salvage Value

The forecasted residual worth of an asset upon reaching the end of its utility life.

Straight-Line Method

A method of calculating depreciation by evenly distributing the cost of an asset over its useful life.