Which of the Following Is TRUE Regarding the Chain-Weighted Output

question 41

Multiple Choice

Which of the following is TRUE regarding the chain-weighted output index method?
I. It is the method used to measure the growth rate of nominal GDP.
II. It uses data from the current year and from the previous year.
III. It is a method of measuring the growth rate of real GDP.

• A) I and II
• B) II and III
• C) I and III
• D) I, II and III

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Definitions:

Cost Flow Assumption

Refers to the method used by companies to value and manage inventory; common examples include FIFO (First In, First Out), LIFO (Last In, First Out), and average cost.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.

Specific Identification

An inventory costing method that tracks the exact cost of each individual item in inventory to determine cost of goods sold.

Estimated Gross Profit

An expected amount of profit calculated by subtracting the estimated cost of goods sold from the estimated total sales revenue.