An Increase in the Price Level That Is Extremely Rapid

question 65

Multiple Choice

An increase in the price level that is extremely rapid (say 400% per year) is called:

• A) hyperinflation.
• B) inflation.
• C) deflation.
• D) hyperdeflation.

---

Definitions:

Manufacturing Accounts

Financial statements that reflect the costs and revenue associated with the manufacturing process of a company.

Process Costing

A costing method used where similar items are produced in a continuous manufacturing environment, assigning costs based on the process they go through.

Direct Materials

Direct Materials are raw materials that are directly traceable and allocable to a finished product in the manufacturing process.

Work in Process Inventory

Items currently undergoing production but have not yet reached completion.