NICO Corporation Had Net Current Assets of $2,000,000 at the End

question 168

Multiple Choice

NICO Corporation had net current assets of $2,000,000 at the end of 2010 and $1,800,000 at the end of 2009. In addition, NICO had net spontaneous current liabilities of $1,000,000 in 2010 and $1,500,000 in 2009. Using this information, NICO's net current asset investment for 2010 was

• A) $700,000.
• B) -$300,000.
• C) $300,000.
• D) -$700,000.

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Definitions:

Differential Costs

The difference in total costs between two alternatives, helping in decision-making processes where alternatives are being considered.

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered by future actions.

Sunk Cost

Refers to money that has already been spent and cannot be recovered, which should not influence future business decisions.

Standard Cost Formula

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under normal conditions, used for budgeting and cost control.