If Unplanned Inventory Investment Is Zero

question 163

Multiple Choice

If unplanned inventory investment is zero

• A) aggregate output equals planned aggregate expenditures.
• B) aggregate output is greater than planned aggregate expenditures.
• C) aggregate output is less than planned aggregate expenditures.
• D) aggregate output is positive when planned aggregate expenditures are positive.

---

Definitions:

Profit Centers

Parts of an organization that directly add to its profit through their activities, treated as separate entities for financial management purposes.

Divisional Income Statements

Financial statements that show the revenue, expenses, and profit for each division or segment of a company separately.

Income from Operations

The profit generated from the core business activities of a company, excluding revenues and expenses from non-operational activities like financing or investments.

Payroll Cost

Expenses associated with compensating employees, including wages, salaries, and benefits.