Deflation Is

question 185

Multiple Choice

Deflation is:

• A) the average number of times a dollar is spent on final goods and services in a year.
• B) mistaking changes in nominal prices for changes in real prices.
• C) a decrease in the average level of prices.
• D) an increase in the average level of prices.

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Definitions:

Prevention Cost

Expenses incurred to avoid or minimize the number of defects in products, part of quality costs including training, quality planning, and product design.

Quality Cost Report

A financial statement detailing the costs associated with preventing, detecting, and addressing product or service defects.

Internal Failure Cost

Costs incurred when a product or service fails to meet quality standards before it is delivered to the customer, including scrap and rework costs.

Quality Cost Report

A financial statement detailing the costs associated with preventing, detecting, and correcting defective work, categorized into prevention, appraisal, and failure costs.