A Common Error of Business Managers Is to Blame Inflation

question 167

Multiple Choice

A common error of business managers is to blame inflation on

• A)consumer spending.
• B)rising wages.
• C)rising prices.
• D)rising interest rates.
• E)rising unemployment.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Target Profit

The financial goal for the profit a company aims to achieve within a specific period.

High-Low Method

A cost accounting technique used to estimate fixed and variable costs by analyzing the highest and lowest levels of activity.

Variable Cost

Expenses that change directly in relation to fluctuations in production levels or the volume of sales.