If the General Level of Prices Is Higher Than Business

question 103

Multiple Choice

If the general level of prices is higher than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?

• A) a recession
• B) output less than the economy's long-run potential
• C) a sharp reduction in imports
• D) an unemployment rate that is less than the economy's natural rate of unemployment

Understand the role and types of responsibility centres in managing costs and performance.

Acknowledge the significance of inventory accounts and their management in manufacturing.

Comprehend how cost behaviour impacts decision making at various levels of the business.

Recognize the shift towards non-financial information in modern management accounting.

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Definitions:

Discipline Principle

A concept in management that emphasizes the importance of enforcing rules and maintaining order within an organization.

Alternative Hypotheses

Hypotheses that suggest there is a statistically significant difference between groups or variables, as opposed to the null hypothesis.

Null Hypothesis

A default hypothesis that assumes no significant difference or effect between groups or variables in a statistical test.

Hypothesis Testing

A method in statistics to decide whether to accept or reject a hypothesis based on sample data, to determine the likelihood that a parameter related to the population is true.