The Rate of Inflation Tends to Remain Constant When

question 11

Multiple Choice

The rate of inflation tends to remain constant when

• A)the unemployment rate is above the NAIRU.
• B)the unemployment rate equals the NAIRU.
• C)the unemployment rate is below the NAIRU.
• D)the unemployment rate increases faster than the NAIRU increases.

Understand the role of fixed and variable costs in costing methods.

Calculate the value of ending inventory under both absorption and variable costing.

Understand the concept of contribution margin.

Analyze the impact of cost structure on gross margin and contribution margin.