If All Prices, Including the Price of Beef, Increase by 3

question 5

Multiple Choice

If all prices, including the price of beef, increase by 3%, then the relative price of beef has ____ and there _____ inflation.

• A)increased; is
• B)increased; is no
• C)remained constant; is
• D)remained constant; is no

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Definitions:

Overhead Controllable Variance

The difference between the actual overhead incurred and the overhead that management expected or budgeted for, which is within their control.

Budgeted Costs

Estimated expenses planned for a set period of time, forming the basis of a budget for managing a business's or project's financial resources.

Materials Price Standard

Pre-determined cost at which materials should be bought, used for budgeting and assessing purchasing performance.

Purchasing Department

A specialized division within a company responsible for acquiring goods and services that the company needs to operate.