If the Price Level Increased from 120 to 144,then What

question 1

Multiple Choice

If the price level increased from 120 to 144,then what was the inflation rate?

• A)24 percent.
• B)25 percent.
• C)20 percent.
• D)17 percent.

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Definitions:

Variable Manufacturing Costs

Expenditures that shift in accordance with the volume of output, like raw materials and direct labor costs.

Selling Commission

A fee paid to salespersons or agents for selling a company's products or services, usually a percentage of the sale price.

Net Operating Income

An accounting term representing the profit derived from a company's everyday, non-financial activities and excluding extraordinary items.

CVP Analysis

Short for Cost-Volume-Profit Analysis, it's a management accounting technique used to analyze how changes in costs and volume affect a company’s operating income and net income.