Which Item Would Receive the Most Weight in the Consumer

question 57

Multiple Choice

Which item would receive the most weight in the consumer price index?

• A) Salt
• B) Toothpicks
• C) Pencils
• D) Food

---

Definitions:

Net Realizable Value

The estimated selling price of goods minus the cost of completion and the costs necessary to make the sale.

Lower Of Cost

A accounting principle that mandates reporting the cost of inventory and other assets at the lower of their original cost or current market value.

Generally Accepted Accounting Principles

The standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as GAAP.

Lower Of Cost

An accounting principle requiring inventory to be recorded at the lower of its historical cost or market value.