Figure 18-2 -Refer to Figure 18-2.What Happens to the Profit Earned by the Profit

question 18

Multiple Choice

Figure 18-2

-Refer to Figure 18-2.What happens to the profit earned by apple producers and the wage earned by apple pickers when the price of apples falls

• A)Both profit and the wage will fall.
• B)Both profit and the wage will rise.
• C)Profit will rise, and the wage will fall.
• D)Profit will fall, and the wage will rise.

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Definitions:

Perpetual Inventory System

An inventory accounting system that records inventory purchases and sales in real-time.

Missing Amounts

Calculations or adjustments made in accounting to determine unknown figures in financial statements due to incomplete records or errors.

Cost of Goods Purchased

The total cost incurred for goods bought for resale or used in production during a specific period, excluding labor and overhead expenses.

Net Purchases

Total purchases minus returns, allowances, and discounts.