Deflation Is Derived from a Latin Word Meaning

question 28

Multiple Choice

Deflation is derived from a Latin word meaning

• A) to erode.
• B) to blow away.
• C) to lose volume.
• D) to abrade or scrape.

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Definitions:

Fixed Overhead

Expenses that do not vary with the level of production or sales, including rent, salaries, and insurance costs.

Period Cost

Costs that are not directly tied to the production process and are instead expensed in the period they are incurred, such as selling, administrative, and other expenses.

Manufacturing Costs

The total expenses involved in making a product, including direct materials, direct labor, and factory overhead.

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.