Which of the following factors might cause "spontaneous" assets and liabilities to change at a different rate than sales?
A)Lumpy assets
B)Economies of scale
C)Excess capacity
D)All of the above
E)Answers b and c above

Question

Quizplus · Accepted Answer

Lumpy assets, economies of scale, and excess capacity can all cause spontaneous assets and liabilities to change at a different rate than sales. Lumpy assets may require large investments at once, economies of scale can lead to cost advantages that don't scale linearly with sales, and excess capacity allows for sales growth without proportional increases in assets.

Which of the Following Factors Might Cause "Spontaneous" Assets and Liabilities