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:

Laspeyres Price Index

A measure of the change in the overall price of a specific set of goods and services over time, using the quantities of the goods and services purchased in the base period.

Consumption Bundle

A combination of goods and services that a consumer chooses to consume at a given time.

Prices

The total monetary value expected, called for, or delivered in payment for an object.

Laspeyres Price Index

A price index used to measure the change in the cost of purchasing a fixed basket of goods and services over time, based on the quantities purchased in the base period.