An Index of Clothing Prices for 2008 Based on 1998

question 54

Multiple Choice

An index of clothing prices for 2008 based on 1998 is to be constructed. The clothing items considered are shoes and dresses. The information for prices and quantities for both years is given below. Use 1998 as the base period and 100 as the base value. Determine the simple average of the price indexes.
An index of clothing prices for 2008 based on 1998 is to be constructed. The clothing items considered are shoes and dresses. The information for prices and quantities for both years is given below. Use 1998 as the base period and 100 as the base value. Determine the simple average of the price indexes.

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Definitions:

Balance Sheet

An accounting document that lists a business's assets, liabilities, and the equity of its shareholders at a specific date.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net assets, representing the company's reputation, customer relationships, and other unquantifiable factors.

Internally Generated

Assets or resources that are created within an organization, without acquiring them from external sources.

Gain On Sale

The profit received from selling a capital asset for more than its purchase price.