In the Current Year, the CPI Is 122 and During

question 70

Multiple Choice

In the current year, the CPI is 122 and during the previous year the CPI was 115. The inflation rate between these years is

• A)6.1 percent.
• B)1.61 percent.
• C)5.7 percent.
• D)-5.7 percent.
• E)-6.1 percent.

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Definitions:

Inventory

A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold. These are considered liquid assets.

Standard Price

A predetermined cost or selling price of a product or service, often used in budgeting and accounting to measure variances in actual cost or price.

Direct Materials

Raw materials directly used in the manufacturing of a product, easily traceable to the finished product.

Purchasing Department

A division within a business that is responsible for acquiring goods, services, and materials necessary for the company's operations.