• How do chief financial officers help to manage a business through times of cost increases such as is occurring now in the U.S. economy? State the decisions they make as you imply from the discussion in this article.
• What are the effects of cost increases over time?
• Define the terms product cost and period cost.
• List at least three cost increases given in this article. Identify at least one product cost and one period cost. Explain how these costs meet the definition of either product cost or period cost.
• What do you think is margin for earnings before interest and tax? Put into your own words how you might calculate such an amount.
• Refer again to your answer above. What does Clorox Co. say happens to this margin every year through its cost savings programs?
• What happens to the value of currency over time with inflation? Are there any examples historically or in the world today?