Fact Pattern 20-1 (Questions 14-16 Apply)

question 45

Multiple Choice

Fact Pattern 20-1 (Questions 14-16 apply)
Excel Vehicles, Inc., makes and sells automobiles to auto dealers, including Fine Auto Sales. Fine sells the cars to consumers and businesses.
-Refer to Fact Pattern 20-1.A car in Fine's possession is probably

• A) a consumer good.
• B) an accession.
• C) equipment.
• D) inventory.

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Definitions:

Decline in Technology

A decline in technology refers to a period or situation where technological progression slows down, technologies become obsolete, or there is a decrease in the adoption of new technologies.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, resulting in a decreased cost per unit.

Positive Economic Profits

Earnings that exceed the total opportunity costs of all inputs, indicating a return above the normal profit level.

Expand

To increase in size, number, or importance, often relating to businesses aiming to grow through increased operations, product lines, or market reach.