A Year's Tuition at a State University Cost $250 in 1972

question 155

Multiple Choice

A year's tuition at a state university cost $250 in 1972 when the CPI equaled 0.418. The cost of a year's tuition at the same state university cost $8,000 in 2016 when the CPI equaled 2.40. The real cost of tuition between 1972 and 2016:

• A)increased.
• B)decreased.
• C)remained constant.
• D)may have either increased or decreased.

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Definitions:

Deferred

Refers to expenses or income that has been incurred but not yet recognized in the accounts, to be recognized in a future period.

Released

Refers to a product or information that has been made available to the public or to a specific group.

Variable Costing

An accounting method that only considers variable costs (costs that change with production volume) in product pricing and decision making.

Unit Product Cost

The cumulative expense of manufacturing a single product unit, encompassing direct materials, direct labor, and overhead costs.