The Value of $100 in the Year 1980 Is Valued

question 20

Multiple Choice

The value of $100 in the year 1980 is valued at $339.81 in the year 2021, after accounting for inflation rates in the United States. What term is used to refer to the amount of US$339.81?

• A) current dollars
• B) constant dollars
• C) nominal dollars
• D) base dollar unit

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Definitions:

Manufacturing Business

A type of business that produces finished goods from raw materials by using various forms of machinery and human labor in a process known as manufacturing.

Factory Overhead

All the overhead costs related to the production process, except for the expenses on direct materials and direct labor.

Cost of Goods Sold

The direct costs attributed to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the product.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production.