Table 13-3 -Refer to Table 13-3

question 38

Multiple Choice

Table 13-3
$$\begin{array}{c} \quad \quad \quad\text { Base Year (2006) } \quad \quad 2013\\\begin{array} { | l | c | c | c | } \hline \text { Product } & \text { Quantity } & \text { Price } & \text { Price } \\\hline \text { Cokes } & 100 & \$ 0.50 & \$ 0.75 \\\hline \text { Hamburgers } & 200 & 2.00 & 2.50 \\\hline \text { CDs } & 10 & 20.00 & 21.00 \\\hline\end{array}\end{array}$$
-Refer to Table 13-3.Assume the market basket for the consumer price index has three products - Cokes,hamburgers,and CDs - with the following values in 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals

• A)75.
• B)93.
• C)108.
• D)121.

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Definitions:

Abnormal Spoilage

This is the waste or loss of production materials that exceeds the normal level expected during the manufacturing process.

Unit Cost

The cost incurred to produce, store, and sell one unit of a product, calculated by dividing the total cost by the number of units produced.

Inventory Valuation

The method used to assign a monetary value to a company's inventory, taking into account the costs of acquiring, producing, and storing the products.

Operational Costing

An approach in accounting that focuses on analyzing and estimating the costs linked to the operation of a business.