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3 years ago

Why do we hav food price inflation?

Business

2 answers:

umka21 [38]3 years ago

7 0

Food Prices Rise for 4 Reasons

Grocery prices have risen 2-3% each year since 1990. There are four causes of this inflation in world food prices.

First, high gas prices prices lead to higher food prices. Food is transported great distances, especially if imported. That raises shipping costs, which translates into higher food prices. High gas prices are caused by high oil prices cause high gas prices. It usually takes about six weeks for increases in oil futures to translate to the pump.

Oil byproducts are also used to make fertilizer. That contributes 20% of the cost of raising grain. Higher oil prices increase corn, wheat, and soybean cost by 40% between 2001 and 2007.

Second, the U.S. government subsidizes corn production that is used for bio-fuels. This takes corn out of the food supply, raising prices. America now uses 40% of its corn crop to make ethanol. That's up from 6% in 2000. (Source: "Oily Food," The Economist<span> , October 10, 2015)</span>

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alexdok [17]3 years ago

3 0

Grocery prices have risen 2-3% each year since 1990. There are four causes of this inflation in world food prices.

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1. Congress passed the Sarbanes-Oxley Act to ensure that investors invest only in companies that will be profitable.

Oksana_A [137]

Answer:

1. False

2. False

3. False

4. True

5. True

Explanation:

Sarbanes-Oxley Act was a federal law that was established by congress to sweep auditing and financial statements for public companies. The main aim for this was to improve the investor confidence by improving reliability in accounting statements. Errors in the financial statements for the public companies were to be minimized following this law especially in the wake of numerous cases of corporate crime. This law was never passed to ensure that investors only invest in companies that will be profitable, since the choice of which company to invest in is exclusively left to the investor. So the above statement is false.

Ethics can be defined as a set of rules and regulation that govern the moral behavior of someone. Ethical standards vary from one region to another since they are majorly cultural, for example; a behavior in the United States can be considered as appropriate while the same behavior in a different place can be inappropriate. Ethical standards are either right or wrong, and the actions are judged on these terms. Ethics don't measure whether a actions are loyal or disloyal, thus the statement is false.

The primary accounting standard setting body in the United States is Financial Accounting Standards Board (FASB). This body is charged with regulating and setting the best standard of accounting practice. The FASB usually constitutes a board whose officials are rigorously assessed. The board members have to be professionals in the field of accounting. Securities and Exchange Commission on the other hand is an independent federal agency with the authority to enforce federal security laws. Thus the statement above is false.

The historical cost principle suggests that the companies record assets cost at their original cost and continue to report them at their original cost over the time the asset is held. The historical cost principle is a generally accepted accounting principle that has been in use for a long time. The definition about the historical cost principle in the question above is therefor true.

The monetary unit assumption dictates that business related activities be converted to monetary units. There are some business transactions that are however quite difficult to convert into monetary units, therefor the accountant in using this principle is only obliged to record only the transactions that can be measured in money terms. The statement about monetary units in the question above is thus true.

8 0

3 years ago

If the government increases taxes in response to an inflation, the government is engaging in what economists call?

olchik [2.2K]

Answer:

fiscal policy

Explanation:

Fiscal policy is the policy which is used by the government the tax rate and government spending economy to analyse the economy of the nation

It is a technique through which a national bank impacts a country's cash supply.

The instances of fiscal policy are tax reductions and expanded government spending. Both of these strategies are proposed to build total interest while adding to shortages or drawing down of spending plan surpluses.

4 0

3 years ago

Read 2 more answers

The following inventory information was taken from the records of Kleinfeld Inc.: Historical cost $12,000 Replacement cost $7,00

Alisiya [41]

Answer:

Inventory should be increased by $3,500

Explanation:

Calculation for What adjustment to inventory should be made under IAS 2 after this event

Adjustment to inventory under IAS 2= 13,000 - 9,000- 500

Adjustment to inventory under IAS 2 = $3,500 Increased

Based on the above calculation the adjustment to inventory that should be made under IAS 2 after this event is that Inventory should be increased by $3,500.

8 0

3 years ago

What will happen to the current ratio if current assets increase, while everything else remains unchanged?

Nana76 [90]

The current ratio will increase if current assets increase, while everything else remains unchanged.

This is further explained below.

<h3>What is the current ratio?</h3>

Generally, A liquidity ratio that evaluates a company's capacity to pay short-term debts or those that are due within the next year is called the current ratio.

It explains to investors and analysts how a business may get the most out of the current assets that are shown on its balance sheet in order to pay off its current debt and any other payables.

A current asset is defined as any asset that a company can reasonably expect to sell, consume, or deplete through the normal operations of the business inside the current financial year or an operating cycle, or an economic year.

In other words, a current asset is an asset that will be sold, consumed, or exhausted.

In conclusion, If current assets continue to grow while everything else stays the same, the current ratio will continue to show an upward trend.