The MPC and MPS Measure Changes in Consumption Expenditure and Saving

question 149

Multiple Choice

The MPC and MPS measure changes in consumption expenditure and saving that result from changes in

• A) expected inflation.
• B) government expenditures on goods and services.
• C) expected future income.
• D) disposable income.

Distinguish between operating expenses and costs directly associated with the manufacturing process.

Comprehend the allocation of costs to ending inventory and cost of goods sold under FIFO and LIFO methods.

Understand the implications of the lower of cost or net realizable value rule on financial statements.

Identify the flow of goods from production to finished goods inventory.