The Best Definition of Inflation Is

question 109

Multiple Choice

The best definition of inflation is

• A) a temporary increase in prices.
• B) an increase in the price of one important commodity such as food.
• C) a persistent increase in the general level of prices as measured by a price index.
• D) an increase in the purchasing power of the dollar.

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Definitions:

Standard Cost

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under current or anticipated operating conditions.

Direct Labor Variances

The differences between the actual costs of direct labor and the standard or expected costs, used for budgeting and cost control.

Direct Labor Workers

Employees who are directly involved in the production of goods or services.

Property, Plant, and Equipment

Long-term tangible assets held for business use and not expected to be converted to cash in the short term.