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The power differential between subunits is influenced by:
Price Level
The average of current prices across the entire spectrum of goods and services produced in the economy.
Net Income
The residual earnings of a company following the subtraction of all costs and taxes from its revenue.
Costing Method
An accounting approach used to value inventory and determine the cost of goods sold, which can vary, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).
Ending Inventory
The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.
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