Table 13-10 -Refer to Table 13-10

question 14

Multiple Choice

Table 13-10
$\begin{array}{|l|r|r|r|r|r|}\hline &\text { Ouantity } & \text { Price } & \text { Expenditure } & \text { Price }& \text { Expenditure (on base year} \\\text { Product } & \text { (2013) } & (2013) & {(2013) } & \text { (2018) } & \text { quantities) (2018) } \\\hline \text { Computers } & 1 & \$ 1,200 & \$ 1,200 & \$ 900 & \$ 900 \\\hline \text { Books } & 10 & 25 & 250 & 30 & 300 \\\hline \text { Burgers } & 50 & 3 & 150 & 4 & 200 \\\hline \text { Total } & & & \$ 1,600 & & \$ 1,400\\\hline\end{array}$
-Refer to Table 13-10.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2013 is the base year,then what is the CPI for 2018?

• A) 14.3
• B) 87.5
• C) 114.3
• D) 160

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Definitions:

Materials Costs

Expenses associated with the raw materials used in the manufacture of products.

Assembly Department

A specialized section within a manufacturing facility where components are assembled into final products.

Step-Down Method

A cost allocation method used in accounting to allocate overhead costs to various cost objects, starting with the department incurring the highest costs.

Service Department Costs

Costs incurred by departments that do not directly produce goods but provide support or services to other units within the organization.