In 2002 Your Annual Salary Was $50 000 and in 2007

question 6

Multiple Choice

In 2002 your annual salary was $50 000 and in 2007 your annual salary is $75 000. The CPI in 2002 was 136 and the CPI in 2007 was 156.1. Which of the following is the percentage change in your real income from 2002 to 2007?

• A)50% increase in real income from 2002 to 2007.
• B)33.33% increase in real income from 2002 to 2007.
• C)30.69% increase in real income from 2002 to 2007.
• D)None of these choices are correct.

---

Definitions:

Deferred

Deferred refers to something that is postponed or delayed to a later time, often used in the context of accounting to describe expenses or income.

Absorption Costing

An accounting method that includes all manufacturing costs (direct labor, direct materials, and both variable and fixed overhead) in the cost of a product.

Unit Product Cost

The total cost associated with producing a unit of product, including both fixed and variable costs, divided by the total number of units produced.

Net Operating Income

A financial metric that represents the profit a company generates from its operations, excluding expenses from interest and taxes.