Between October 2001 and October 2002, the CPI in Canada

question 180

Multiple Choice

Between October 2001 and October 2002, the CPI in Canada rose from 116.5 to 119.8 and the CPI in Mexico rose from 93.2 to 102.3. What were the inflation rates for Canada and Mexico over this one-year period?

• A)2.8 percent for Canada and 9.1 percent for Mexico
• B)2.8 percent for Canada and 9.8 percent for Mexico
• C)3.3 percent for Canada and 9.1 percent for Mexico
• D)3.3 percent for Canada and 9.8 percent for Mexico

Analyze the impact of fixed manufacturing overhead on inventory valuation and net operating income.

Understand how fixed manufacturing overhead is treated under variable and absorption costing.

Analyze the financial implications of using variable versus absorption costing in different fiscal periods.

Understand the concept of net operating income under both absorption and variable costing methods.

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