If the Price Index Is P1 in Year 1 and P2

question 99

Multiple Choice

If the price index is P1 in year 1 and P2 in year 3,the average inflation rate per year over this period is calculated as

• A)(P2 - P1)× (100/2).
• B)[(P2 - P1)/P1] × 100.
• C)[(P2 - P1)/P1] × [100/2].
• D)[(P1 - P2)/P2] × 100.
• E)[(P1 - P2)/P2] × [100/2].

Understand the role and accounting for support department costs.

Identify and evaluate the methods for allocating joint costs and their appropriateness given the context.

Understand the importance and methods of allocating support department costs to products.

Distinguish between different methods of support department cost allocation and their accuracy.

---

Definitions:

Lean Business Model

A lean business model focuses on creating more value for customers with fewer resources by minimizing waste and optimizing processes.