A Company Has Had Stable Sales and Production for Several

question 112

Multiple Choice

A company has had stable sales and production for several years.Next year, sales are expected to increase by at least 50%.Assuming 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
• E) None of these

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Definitions:

Population

In biology, it refers to all the organisms of the same group or species who live in a particular geographical area and are capable of interbreeding.

Monozygotic Twins

Twins that result from the division of a single fertilized egg and share all of their genetic material, often referred to as identical twins.

Similar

Having likeness or resemblance, especially in terms of qualities or characteristics.

Intelligence

The skill to assimilate, grasp, and implement insights, tackle challenges, and accommodate to unfamiliar conditions.