The Prime Rate

question 84

Multiple Choice

The prime rate:

• A) is the rate that banks are charged by the Bank of Canada.
• B) was over 30% in the early 1980s.
• C) is fixed over a long period of time.
• D) is affected by economic and political factors.

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Definitions:

Perpetual Inventory System

An accounting method that records inventory purchases and sales in real time, providing a continuous account of inventory levels.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor.

Costing Inventories

The process of determining the value of inventory, including raw materials, work-in-progress, and finished goods, for financial reporting.