The Most Likely Explanation for the Continued Rise in the Price

question 73

Multiple Choice

The most likely explanation for the continued rise in the price of Sony Playstation video games is

• A) a decrease in the price of Nintendo video games.
• B) an increase in the price of Sony Playstation consoles.
• C) an increase in preferences for video games.
• D) a decrease in income.
• E) a reduction in the amount of video-game advertising.

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Definitions:

Ending Direct Materials

The value of materials that are available for use at the end of a specific accounting period, after accounting for beginning inventory and any purchases or usage during the period.

Beginning Direct Materials

The cost of raw materials available for use in production at the start of an accounting period.

Merchandise Purchases Budget

An estimation of the cost of goods a retail company plans to buy for a specific period.

Production Budget

A financial plan that estimates the number of units that must be produced within a specific period to meet anticipated sales demands and maintain inventory levels.