A Country Reports the Total Expenditures on the Fixed CPI

question 115

Multiple Choice

A country reports the total expenditures on the fixed CPI basket for the past three years.The cost of the CPI basket in 2010 was $23,000,the cost of the CPI basket for the reference base period,2011,was $23,805,and the cost of the CPI basket in 2012 was $24,500.The CPI for 2012 is

• A)245.0.
• B)97.2.
• C)106.5.
• D)102.9.
• E)93.9.

---

Definitions:

Periodic FIFO

Periodic FIFO (First-In, First-Out) is an inventory costing method used to calculate the cost of goods sold, assuming that the oldest inventory items are sold first.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding new purchases to the beginning inventory and subtracting the cost of goods sold.

Inventory Costing

The process of assigning costs to inventory items and determining the cost of goods sold.

Understated

Describes a situation where figures or estimates are reported lower than they actually are, leading to inaccuracies in financial or data reporting.