In Accounting for Changes in Fixed Assets, Which One of the Following

question 44

Multiple Choice

In accounting for changes in fixed assets, which one of the following statements is NOT true?

• A) When a firm is not operating at full capacity, sales may be increased without adding any new fixed assets.
• B) Since it requires time to get new assets operational, they are added as the firm nears full capacity.
• C) Fixed assets are added in large discrete amounts called lumpy assets.
• D) All of the above are true.

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Definitions:

Fordism

An industrial production model characterized by mass production, standardized products, and assembly line techniques, pioneered by Henry Ford.

Taylorism

A management theory focused on improving economic efficiency and labor productivity through systematic time-and-motion studies and the division of labor.

Involuntary Part-time Worker

An individual who is employed less than full-time hours but prefers a full-time position, often due to economic conditions or employer decisions beyond their control.

Grocery Store

A retail establishment that primarily sells food, both fresh and packaged, along with various household goods.