Which One of the Following Categories Would Be Least Likely

question 93

Multiple Choice

Which one of the following categories would be least likely to require annual adjustments in a capital budgeting analysis due to the effects of inflation?

• A) Sales
• B) Expenses
• C) Working capital
• D) Depreciation expense

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Definitions:

Personal Savings

The portion of an individual’s income that is not spent on consumption and is set aside for future use, typically in a savings account or investment.

Marginal Cost

The increase in cost that arises from producing one additional unit of a product or service.

R&D Financing

The process of funding research and development activities, typically involving significant investment in innovation and technology to spur growth and competitive advantage.

R&D Activities

Research and Development activities aimed at innovating and improving products or processes.