Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Financial Statement Analysis, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to The Washington Post, some companies are exploiting inflation to pad their bottom lines.


  1. What evidence indicates that companies are raising prices to exploit rather than in relation to underlying cost increases?
  2. If companies are passing on their own higher costs to consumers, their _______________ should stay roughly the same.
  3. How do analysts expect EBIT margins to react this year?
  4. What do you think is driving inflation? Why?


Kaissar, N. (2022). Companies exploit inflation to pad their bottom lines. The Washington Post, March 4 (Retrievable online at