Consider the Following Data That Gives the Quantity Produced and Unit

question 95

Multiple Choice

Consider the following data that gives the quantity produced and unit price for three different goodsacross two different years to answer the next questions. Assume that the base year is 2012
$$\begin{array} { l l c l l } \hline \text { Good } & \text { 2012 Price } & \text { 2012 Quantity } & \text { 2013 Price } & \text { 2013 Quantity } \\\hline \text { A } & \$ 2.00 & 500 & \$ 2.50 & 600 \\\text { B } & \$ 4.00 & 1,000 & \$ 5.00 & 900 \\\text { C } & \$ 2.00 & 200 & \$ 1.00 & 300 \\\hline\end{array}$$

-What was the rate of inflation between the two years?

• A) 19.44 percent
• B) 8.57 percent
• C) 6.67 percent
• D) 2.38 percent
• E) 16.67 percent

Identify the components of unit product cost under both variable and absorption costing.

Understand the concept of segmented income statements and the calculation of segment break-even points.

Grasp the principles of cost allocation and its effects on segment reporting and decision-making.

Analyze the effects of inventory changes on net operating income under variable and absorption costing.

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Definitions:

Percentage Points

Percentage points are used to express an absolute difference between two percentages, emphasizing the distinction between percentage changes.

Total Income

The sum of all earnings obtained from labor, capital investments, and any other source before any taxes or deductions are applied.

Income Distribution

The way in which a nation’s total GDP is distributed amongst its population, affecting the economic well-being of its citizens.

Official Poverty Line

A threshold set by the government defining the minimum level of income sufficient to cover basic living expenses, used to identify individuals or households in poverty.