Which of the Following Industry Is Sensitive to Business Cycle

question 98

Multiple Choice

Which of the following industry is sensitive to business cycle and price changes?

• A) Growth industry
• B) Cyclical industry
• C) Defensive industry
• D) Interest sensitive industry

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Definitions:

Inventory Procedures

Established methods for managing and controlling inventory levels, valuation, and turnover.

Gross Profit Method

An inventory valuation technique estimating the cost of goods sold and the ending inventory, based on the gross profit margin.

LIFO Liquidations

A situation where older inventory, costed at historical prices, is sold, potentially leading to an inflated profit margin due to lower cost of goods sold.

Interim Report

A financial statement covering a period of less than one fiscal year that provides updates on a company's performance and financial position between annual reports.