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 based on the historical cost of an asset and is not directly affected by inflation, unlike sales, expenses, and working capital, which can fluctuate with inflation.

Which of the Following Categories Would Be Least Likely to Require