The Term Business Cycle Refers To

question 57

Multiple Choice

The term business cycle refers to:

• A)periodic bouts of inflation and recession that occur in a capitalist economy.
• B)regular government intervention in the economy that is intended to reduce income inequality.
• C)periodic government intervention into the economy that is intended to address market failures.
• D)seasonal changes in the mix of goods and services produced by an economy.
• E)expected declines in the level of economic activity that occur in socialist economies.

---

Definitions:

Cost of Goods Sold

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

Beginning Inventory

The value of goods available for sale at the start of an accounting period, essential for calculating cost of goods sold during the period.

Ending Inventory

The cost of products on offer for buying by the close of an accounting cycle.

Income Statement Columns

The structured format in financial reporting that shows a company's revenues, expenses, and profitability over a specific time period.