What Does the Consumer Price Index (CPI)measure

question 134

Multiple Choice

What does the Consumer Price Index (CPI) measure?

• A) prices of durable goods
• B) prices of non durable goods
• C) the cost of living over time
• D) the cost of replacing lost items

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Definitions:

Freight Charges

Costs associated with transporting goods from one place to another.

Service Potential

Service potential refers to the capacity of an asset to provide goods or services that contribute to the future income of an organization.

Office Equipment

Tangible, long-term assets used in the operation of a business, such as computers, printers, and furniture, facilitating daily work tasks.

Land

A natural resource representing the earth's surface not including any structures; often considered a fixed asset in accounting.