Table 13-6 $\begin{array}{|c|c|}\hline \text { Year } & \text { CPI } \\\hline 1996 & 157 \\\hline 1997 & 161 \\\hline 1998 & 163 \\\hline\end{array}$

question 83

Multiple Choice

Table 13-6
$\begin{array}{|c|c|}\hline \text { Year } & \text { CPI } \\\hline 1996 & 157 \\\hline 1997 & 161 \\\hline 1998 & 163 \\\hline\end{array}$
-Refer to Table 13-6.Consider the following values of the consumer price index for 1996,1997,and 1998: The inflation rate for 1997 was equal to

• A) 1.2 percent.
• B) 2.0 percent.
• C) 2.5 percent.
• D) 4.0 percent.

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Definitions:

Efficiency and Effectiveness

Terms that relate to the extent to which objectives are achieved (effectiveness) and the relation between the output and the resources used to produce it (efficiency).

Retail Method

An accounting practice used in the retail industry to estimate inventory costs based on the retail price.

Merchandise Inventory

Goods available for sale, valued at the lower of cost or market price, on a company's balance sheet.

Estimated Cost

A projection or approximation of the cost associated with manufacturing a product or completing a project.