The inflation accounting technique enables a company to exhibit or have a realistic image of its profits based on current costs and current sales. As a result, the goal of this research is to see if inflation has a substantial impact on the performance of manufacturing companies. In this study, a cross-sectional design will be used. Based on the population, fifty manufacturing companies will be picked. In order to determine how changes in gross profits are affected by the rate of inflation, this study will employ cluster random sampling and correlation analysis. The results of the study reveal that gross profit and inflation rate have a positive association.
Key words: Inflation, Accounting, Companies, Manufacturing, Cost.
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