A Company Has Had Stable Sales and Production for Several

question 110

Multiple Choice

A company has had stable sales and production for several years.Next year,sales are expected to increase by at least 50%.Assume that the company maintains its policy for desired ending inventories of finished product and direct materials purchases.What will be the likely effect on the desired ending inventory of finished product?

• A)It will increase.
• B)It will decrease.
• C)It will stay the same.
• D)It will be twice the size of the desired ending inventory of raw materials.

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Definitions:

Foreign Policy

A government's strategy in dealing with other nations, involving diplomacy, security, and economic interests.

Fiscal Policies

Government policies regarding taxation and expenditure decisions designed to influence a country's economy, including methods to manage inflation, unemployment, and stimulate economic growth.

Eastern Europe

A region that encompasses many countries to the east of Germany and west of the Ural Mountains, known for its rich history and cultural diversity.

Soviet Union

A former federal socialist state in Eastern Europe and Northern Asia, existing from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR).