Changes in Relative Prices May Occur in a Period of

question 32

Multiple Choice

Changes in relative prices may occur in a period of

• A)Stable prices only.
• B)Inflation only.
• C)Deflation only.
• D)Stable prices,inflation,or deflation.

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Definitions:

Standard Cost Per Bag

A pre-determined cost estimate for producing or purchasing a single unit of product, in this context, a bag.

Direct Material

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Direct Labour

The workforce directly involved in the manufacturing of goods or provision of services, whose wages are directly associated with specific products or services.

Labour Rate Variance

The difference between the actual cost of labor and the budgeted cost, based on hours worked and the rates paid.