Question

In 2018, Glumland's planned investment was $100 billion and its actual investment was $140 billion. In 2018, Glumland's unplanned inventory change was:

Select one:

A. $40 billion

B. $240 billion

C. $120 billion

D. -$40 billion

Answer 1

The correct answer is (A)

Step-by-step explanation:

Glumland's planned investment was $100billion before they started the business. During the period, the investment increased from $100billion to $140 billion. So, the difference between planned and actual investment is;

$140 b - $ 100b = $40 b

The difference is $40 billion, which is also the unplanned inventory because unplanned inventory is the difference between planned and actual cost or investment.