Which of the Following Activity Bases Would Be the Most

question 104

Multiple Choice

Which of the following activity bases would be the most appropriate for food costs of a hospital?

• A) Number of cooks scheduled to work
• B) Number of x-rays taken
• C) Number of patients who are admitted in the hospital
• D) Number of scheduled surgeries

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Definitions:

Inflation

Refers to the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Purchasing Power

The worth of currency measured by how many goods or services can be purchased with one unit of it.

Deflation

A decrease in the general price level of goods and services, often leading to an increase in the real value of money.

Annual Interest Rate

The percentage of the principal that is paid as interest to the lender over the course of a year.