Who Is Most Likely to Gain as a Result of Unanticipated

question 85

Multiple Choice

Who is most likely to gain as a result of unanticipated inflation?

• A) Roberta who invested $5,000 in real estate before the inflation began.
• B) Hector who invested $10,000 in government bonds that pay a fixed rate of interest of 5.3 percent.
• C) James who just signed a two-year consulting contract that does not include a cost of living adjustment.
• D) Rebecca who put $2,000 in her savings account.

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Definitions:

Standard Costs

Predetermined costs for materials, labor, and overhead used as benchmarks for measuring performance.

Kilos

A unit of measurement equivalent to one thousand grams, used commonly across the world to denote mass in the metric system.

Raw Material

Basic substances in their natural, modified, or semi-processed states used as an input for a manufacturing process.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks for measuring actual performance and cost control.