Which Statement Is Correct

question 126

Multiple Choice

Which statement is correct?

• A)All sectors of the economy are affected to similar degrees by business fluctuations.
• B)Real output and employment generally show little variance over the business cycle.
• C)The production of nondurable consumer goods is more stable than the production of durable consumer goods over the business cycle.
• D)Recessions have not been severe because economists and statisticians have been able to predict their occurrence and intensity with high accuracy.

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Definitions:

Lower-of-Cost

A principle that dictates inventory should be recorded at either its original cost or the market value, whichever is lower, to avoid overstating assets.

Ending Inventory

The total value of all inventory that a company has in stock at the end of an accounting period.

Inventory Accounting

The process of valuing and tracking physical stock and its cost flow from purchase to sale, used to determine cost of goods sold and inventory balance.

FOB Destination

A shipping term indicating that the seller bears the freight charges and retains ownership of goods in transit until they are delivered to the buyer.