Inflation Is the Increase In

question 131

Multiple Choice

Inflation is the increase in:

• A)total output.
• B)imports relative to exports.
• C)total output per worker.
• D)the general level of prices.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Retail Inventory Method

An accounting method used by retailers to estimate inventory cost by using a cost-to-retail price ratio based on both beginning inventory and purchases during the period.

Ending Inventory

The total value of all inventory a company has available for sale at the end of an accounting period.

Average Cost

A method of inventory costing that determines the cost of goods sold and ending inventory based on the weighted average cost of all purchases.