The costs of reprinting catalogs and price lists because of inflation are called:
A) menu costs.
B) shoeleather costs.
C) variable yardstick costs.
D) fixed costs.

Question

Quizplus · Accepted Answer

Menu costs refer to the costs a firm incurs in adjusting its prices. These costs include the costs of reprinting catalogs and price lists, which are needed because of inflation. Therefore, the correct choice is A.'''

Note: B, C, and D are not the correct choices as shoeleather costs refer to the costs associated with frequent trips to the bank to make deposits or withdrawals, variable yardstick costs refer to the costs of measuring output in different units due to inflation, and fixed costs remain constant regardless of changes in output or sales.

The Costs of Reprinting Catalogs and Price Lists Because of Inflation