The observation that additions to fixed assets are lumpier than additions to current assets indicates that:

Question

Quizplus · Accepted Answer

The lumpiness of additions to fixed assets suggests that they are acquired in larger increments, possibly due to their high cost or the need for more extensive planning and preparation. In contrast, current assets such as inventory or accounts receivable can be acquired in smaller increments and may require less upfront investment.

The Observation That Additions to Fixed Assets Are Lumpier Than