The Increasing Frequency with Which U

question 103

Multiple Choice

The increasing frequency with which U.S. companies are trimming their health care plans, freezing wages, and laying off employees is a consequence of

• A) the competitive global economy.
• B) the abrupt recent downturn in the U.S. economy.
• C) the labor unions' insistence on salary and benefit raises.
• D) the sharply rising wages of manual and service workers.
• E) the relative lack of competition.

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Definitions:

Inventories Losses

Reductions in the amount or value of inventories due to factors such as deterioration, obsolescence, or theft, resulting in financial loss.

Lower Of Cost

An accounting principle requiring that the inventory is recorded at the lower of its cost or the current market value.

Net Realisable Value

The estimated selling price of goods, minus the costs of their completion and the costs needed to make the sale.

Biological Assets

Living plants or animals that are used in agricultural production or held for sale, whose value and productivity can change over time due to biological transformation.