-Which of the Following Would Be the Most Likely Cause

question 48

Multiple Choice

-Which of the following would be the most likely cause of cost-push inflation?

• A)more aggressive wage bargaining by labour unions
• B)a reduction in raw material prices
• C)a decline in the number of workers belonging to labour unions
• D)more rapid increases in labour productivity
• E)an increase in consumption spending

---

Definitions:

Industry Average

A benchmark or standard performance metric across a sector or industry, useful for comparison and strategic planning.

LIFO

Last In, First Out is a method for valuing inventory that records the most recently manufactured goods as the first ones sold.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made on a periodic basis, not continuously, through physical counts.

Ending Inventory Cost

The total value of all goods available for sale at the end of an accounting period, calculated using a specific inventory costing method like FIFO or LIFO.