A Report Produced by the OECD Suggests That Global Food

question 150

Multiple Choice

A report produced by the OECD suggests that global food prices will increase substantially in the next 10 years. Which of the following would likely cause food prices to rise during this period?

• A) Technological change will increase supply faster than population growth increases demand.
• B) Adverse weather conditions in grain-producing regions of the world will negatively affect production.
• C) The reduction in oil prices has shifted the supply curve to the right.
• D) Governments will institute price controls on food.

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Definitions:

Equivalent Unit

A concept used in process costing that converts partially completed units into a smaller number of fully completed units to measure and allocate costs accurately.

Custom Furniture

Furniture that is specially designed and manufactured according to the specific requirements and preferences of a customer.

Process Costing

A costing system used in situations where a single, homogeneous product (such as cement or flour) is produced for long periods of time.

Weighted-Average Method

A cost accounting method that calculates the cost of goods sold and ending inventory based on the weighted average of all costs of goods available for sale.