Which of the Following Might Create Cost-Push Inflation

question 109

Multiple Choice

Which of the following might create cost-push inflation

• A)A decrease government spending
• B)An increase in oil prices
• C)A decrease in government regulation
• D)An increase in taxes

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Definitions:

Conversion Costs

Expenses for labor and overhead that transform raw materials into finished goods.

FIFO Method

An inventory valuation method where the first items purchased or produced are the first ones to be sold or used, standing for "First In, First Out."

Conversion Costs

The combination of direct labor costs and manufacturing overheads that are incurred in converting raw materials into finished goods.

Total Costs

The complete sum of all expenses, direct and indirect, incurred in producing a good or delivering a service.