The Business Cycle Is the

question 94

Multiple Choice

The business cycle is the

• A)relationship between unemployment and inflation.
• B)irregular fluctuations in economic activity.
• C)positive relationship between the quantity of money in an economy and inflation.
• D)predictable changes in economic activity due to changes in government spending and taxes.

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Definitions:

First-In, First-Out Method

An inventory valuation method where the cost of the earliest goods purchased is the first to be recognized in determining cost of goods sold.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully equivalent units for the purposes of accounting.

Direct Materials

Materials that can be directly linked to the production process of a product and are essential components of the final product.

First-In, First-Out Method

An inventory valuation method where the first items acquired are assumed to be sold first, affecting the cost of goods sold and ending inventory valuation.