The Largest Component of Physical Investment Is

question 52

Multiple Choice

The largest component of physical investment is:

• A) nonresidential fixed investment.
• B) software.
• C) residential investment.
• D) changes in inventory.
• E) unplanned investment.

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Definitions:

Variable Selling

This term likely refers to variable selling expenses, which are costs that fluctuate with sales volume, such as commissions or shipping fees.

Administrative Expense

Costs related to the general operation of a business, such as office supplies, salaries of administrative staff, and utilities, but not linked directly to production or sales.

Budgeted Selling Price

The anticipated amount for which a product or service is expected to sell, as determined during the budgeting process.

Master Budget

A comprehensive financial planning document that consolidates all of a company's budgets, including sales, production, and various operational budgets.