Which Statement Is True

question 64

Multiple Choice

Which statement is true?

• A)The capacity utilization rate for manufacturing firms usually ranges from 80 to 85 percent.
• B)Net investment can be negative.
• C)The most important determinant of the level of investment is the sales outlook.
• D)All of the statements are true.

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Definitions:

Income Statement

A report documenting a business's financial activities, including income, expenses, and net profit, for a particular period.

Period Cost

Expenses that are incurred in a particular time period and are not directly tied to the production process, such as selling, general, and administrative expenses.

Advertising Expense

A cost incurred by a business to promote its products, services, or brand names.

Indirect Materials

Materials that are used in the production process but are not directly traceable to a finished product, such as lubricants and cleaning supplies used in a manufacturing facility.