If the Annual Rate of Inflation Averages Over the Next

question 17

Multiple Choice

If the annual rate of inflation averages over the next years, the approximate cost of goods or services during any year in that decade is where is the time in years and is the present cost. The price of an oil change for your car is presently . Find the rate of change of with respect to when . Round your answer to three decimal places.

• A) 32.176 dollars per year
• B) 1.966 dollars per year
• C) 2.293 dollars per year
• D) 5.962 dollars per year
• E) 32.730 dollars per year

---

Definitions:

Inventories

Items such as products, materials, and supplies held by a company for the purpose of resale or production.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and variable overhead) in the cost of goods sold, while fixed overhead costs are expensed in the period incurred.

Fixed Costs

Costs that do not vary with the level of production or sales activity, such as rent, salaries, and insurance premiums.

Period Costs

Costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued.