When Actual Sales Are Greater Than Production

question 108

Multiple Choice

When actual sales are greater than production,

• A) inventory will decline.
• B) production schedules might have to be revised upward.
• C) accounts receivable will rise.
• D) All of the options are true.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, reflecting the true profitability of a firm's operations.

Demand Increase

A situation where there is a rise in consumer desire to purchase goods or services, leading to higher quantities demanded at the same price levels.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the profitability of a firm beyond normal returns.