Which of the following categories would be least likely to require annual adjustments in a capital budgeting analysis due to the effects of inflation?
A)sales
B)expenses
C)working capital
D)depreciation expense

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense and does not usually change with inflation, unlike sales, expenses, and working capital. Therefore, it is least likely to require annual adjustments in a capital budgeting analysis due to inflation.

Which of the Following Categories Would Be Least Likely to Require