Which of the Following Led to a Strong Demand for Commercial

question 70

Multiple Choice

Which of the following led to a strong demand for commercial real estate in Japan in the mid-1980s,resulting in soaring real estate prices?

• A)low interest rates set by the Bank of Japan combined with optimism of continued strong economic growth
• B)high interest rates of the period along with the adoption of higher credit and borrowing standards
• C)stagnant stock market prices that induced investors to shift investments from stocks to real estate
• D)a historically-sluggish economy that was showing signs of recovery and future economic growth

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Definitions:

Variable Costing

An accounting approach where only variable production costs are assigned to inventory, distinguishing it from absorption costing by treating fixed overhead as a period cost.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net income or loss.

Variable Costing

An accounting method that only assigns variable costs to inventory, excluding fixed manufacturing overhead costs.

Unit Product Cost

The total cost (both direct and indirect) associated with producing a single unit of product.