What Term Is Used for Index Numbers Used to Compare

question 5

Multiple Choice

What term is used for index numbers used to compare changes in prices using a single price point as a starting point?

• A) Chain base relative
• B) Constant bas relative
• C) Floating base relative
• D) Fixed base relative

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Definitions:

Period Cost

Costs that are expensed in the period they are incurred and are not directly tied to inventory or production, such as administrative expenses.

Factory

A building or set of buildings equipped with machinery for manufacturing or producing goods.

Cupcake Mix

A pre-prepared blend of ingredients used for baking cupcakes, requiring only the addition of a few wet ingredients.

Prime Costs

Prime costs are the direct costs of manufacturing a product, consisting of direct labor and direct materials.