Due to a Recession, Hostess Bakeries Found That the Demand

question 112

Multiple Choice

Due to a recession, Hostess Bakeries found that the demand for its products decreased. The demand for products ________ the demand for bakers and ________ the equilibrium wage rate paid to bakers.

• A) increased; raised
• B) decreased; raised
• C) increased; lowered
• D) decreased; lowered

---

Definitions:

FIFO Method

"First In, First Out," an inventory valuation method where goods first purchased or produced are the first to be sold, affecting cost of goods sold and inventory value.

Different Segments

This refers to the division of a business into multiple parts for analysis, accounting, or management purposes, based on products, services, geographic locations, or customer types.

Increasing Costs

A situation where the costs of producing goods or services rise, possibly due to factors like inflation, increased labor costs, or higher material prices.

FIFO Method

A method of inventory valuation where the first items placed in inventory are the first sold, standing for "First In, First Out."