Which Is Not Part of the Story of Cost-Push Inflation

question 52

Multiple Choice

Which is not part of the story of cost-push inflation?

• A) increasing costs push up output prices
• B) demand for output decreases relative to supply
• C) increasing quantity of money
• D) businesses have unsold products and services
• E) consumers have less income to spend

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Definitions:

Conversion Costs

The sum of direct labor and manufacturing overhead costs required to convert raw materials into finished goods.

Process Costing

An accounting methodology used for homogenous goods, tracking and accumulating direct and indirect costs associated with a continuous production process.

Conversion Costs

Costs incurred during the transformation of raw materials into finished goods, typically including direct labor and manufacturing overhead.

Process Costing

A costing system used in industries where goods are produced in a continuous process, costs are accumulated by process or department, and averaged over the units produced.