-What Happens as the Result of a Shortage

question 424

Multiple Choice

-What happens as the result of a shortage?

• A) There is downward pressure on prices.
• B) There is upward pressure on prices.
• C) Consumers begin to view the good as an inferior good because they have a hard time finding it.
• D) Supply of the good decreases.

Calculate the return on investment (ROI), residual income, and margin given financial data.

Determine the effects of changes in sales, expenses, and operating assets on financial performance measures.

Identify factors that affect the return on investment and how management decisions can impact these factors.

Interpret financial data to assess a division or company’s performance.

---

Definitions:

Accelerated Depreciation

A method of depreciation in which an asset loses book value at a faster rate than the traditional straight-line method over its useful life.

Useful Life

The expected time period over which an asset is useful to the owner.

Double-declining-balance

An accelerated method of depreciation which double the rate of normal depreciation, reducing the value of assets more quickly.

Depreciation Expense

The yearly allocation of the cost of an asset over its useful life, reflecting the asset's usage and wear and tear over time.