If the Value of the Price Index Was 103 in 2009

question 3

Multiple Choice

If the value of the price index was 103 in 2009 and 105 in 2010, what was the inflation rate in 2010?

• A) 2.2%
• B) 2.1%
• C) 2%
• D) 1.9%

Analyze the capital accounts before and after the liquidation process.

Understand the process of recording the sale of assets during liquidation.

Apply the concept of gain or loss on realization in the context of liquidation.

Identify the accounts affected during the recording of transactions in liquidation.

---

Definitions:

Standard Cost Card

A standard cost card details the expected costs of materials, labor, and overhead associated with producing a product.

Direct Labor Hour

A measure of the amount of time spent by workers directly involved in the manufacturing process of producing goods.

Overhead Applied

The portion of overhead costs allocated to specific jobs or departments based on a predetermined formula or rate.

Variable Overhead Spending Variance

The difference between the actual variable overheads incurred and the standard costs expected for the actual production level achieved.