Which of the Following Statements About Holding Gain (Cost Savings)in

question 24

Multiple Choice

Which of the following statements about holding gain (cost savings) in the CCA model is false?

• A) Unrealised savings include gains (cost saving) from holding inventory that has increased in price, which have yet to be realised.
• B) Realised savings relate to cost savings in inventory actually incurred, and gains (cost savings) relate to depreciation actually incurred.
• C) Unrealised savings include gains (cost savings) from holding depreciable assets (with higher replacement costs) not yet realised through the process of depreciation.
• D) All of the given options are correct.

---

Definitions:

Creative Destruction

A process in which technological innovation and progress lead to the phasing out of older industries, products, or methods, fostering new growth.

New Products

Items that have been recently introduced to the market, offering new benefits or improvements over previous versions or filling a previously unmet need.

Monopoly Market Positions

Situations where a single firm dominates the market, either in terms of sales, market share, or influence on the product itself.

Interest-Cost of Funds Curve

A graphical representation that shows the relationship between the cost of borrowing and the amount of funds borrowed.