Janelle Earned a Salary of $62,000 in 2004 and $80,000

question 111

Multiple Choice

Janelle earned a salary of $62,000 in 2004 and $80,000 in 2014.The consumer price index was 126 in 2004 and 170 in 2014.Janelle's 2004 salary in 2014 dollars is

• A)$45,953.
• B)$89,280.
• C)$107,953.
• D)$83,651.

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Definitions:

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs related to utilities, depreciation, and salaries for management.

Adjusted Cost

Adjusted cost refers to the original cost of an asset after adjustments for improvements, depreciation, or amortization, directly affecting its value on the balance sheet.

Direct Materials

The cost of raw materials and components used directly in the production of goods.

Indirect Materials

Materials used in the production process that cannot be directly traced to the final product, such as lubricants and cleaning supplies, and are classified as overhead costs.