Other Things the Same,as the Price Level Rises,the Real Value

question 45

Multiple Choice

Other things the same,as the price level rises,the real value of a dollar

• A)rises,and interest rates rise.
• B)rises,and interest rates fall.
• C)falls,and interest rates rise.
• D)falls,and interest rates fall.

---

Definitions:

Cost to Retail Ratio

A ratio used in inventory management that compares the cost of goods sold to the retail price of the goods.

Cost Flow

The manner in which costs move through a company’s accounts, typically following either a FIFO, LIFO, or weighted average approach in costing inventory.

Average Cost

A method to calculate the cost per unit by dividing total costs of goods available for sale by the total units available for sale, used in inventory valuation.

Last-In, First-Out

An inventory valuation method that assumes the items most recently purchased or produced are sold first, leaving older inventory in stock.