If Inflation in Wonderland Averaged About 20% Per Month in 2008

question 48

Multiple Choice

If inflation in Wonderland averaged about 20% per month in 2008, what was the annual inflation rate?

• A)20%
• B)240%
• C)790%
• D)890%

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Definitions:

Direct Labor Hour

A measure of the amount of time workers spend directly manufacturing a product.

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services and are significant in cost.

Total Cost

The complete amount of costs involved in producing, purchasing, and/or selling goods or services, including fixed and variable costs.

Inventory Information

Details about the quantities, locations, and values of a company's inventory, used for managing and reporting purposes.