If Nominal GDP Increased 2 Percent During a Year, While

question 214

Multiple Choice

If nominal GDP increased 2 percent during a year, while real GDP increased 4 percent, the

• A) price level must have increased approximately 2 percent compared to the prior year.
• B) price level must have decreased approximately 2 percent compared to the prior year.
• C) price level must have decreased approximately 50 percent compared to the prior year.
• D) unemployment rate must have increased during the year.

Evaluate the impact of beginning and ending work in process inventories on equivalent units and cost per equivalent unit under the FIFO method.

Interpret operating data to calculate equivalent units of production for materials and conversion costs.

Understand the construction and purpose of the cost reconciliation report under the FIFO method.

Analyze the effects of changes in production costs and work in process inventories on FIFO process costing outcomes.

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