Around the End of the Year,an Accountant Orders a Shipment

question 77

True/False

Around the end of the year,an accountant orders a shipment of inventory earlier than normally scheduled because she knows that it will result in lower cost of goods sold,and thus a higher net income.This action would be considered unethical because it is not a legitimate business transaction.

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Definitions:

Natural Rate

The long-term unemployment rate around which the labor market is considered to be in balance, where the number of people seeking jobs equals the number of jobs available.

Expansionary Gap

A situation in macroeconomics where the real GDP is higher than the potential GDP, leading to inflationary pressures.

Resource Prices

The costs associated with acquiring the inputs needed for production, such as raw materials, labor, and capital.

Short Run

A period in economics during which at least one input, for example, capital or labor, is considered fixed in quantity, while other inputs can be varied to adjust production levels.