For which of the following operating activities is the rate of inflation not commonly used for projections?
A)Food.
B)Clothing.
C)Alimony.
D)Hobbies.
E)Charitable contributions.

Question

Quizplus · Accepted Answer

The rate of inflation is commonly used for projecting the costs of food, clothing, hobbies, and charitable contributions since these expenses are impacted by changes in the cost of living. However, alimony payments are typically based on a fixed amount or percentage of the payer's income, rather than being adjusted for inflation. Therefore, the rate of inflation is not commonly used for projecting alimony payments.

For Which of the Following Operating Activities Is the Rate