Table 11-3
the Table Below Pertains to Studious, an Economy

question 413

Multiple Choice

Table 11-3
The table below pertains to Studious, an economy in which the typical consumer's basket consists of 5 books and 10 calculators. $$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Price of a } \\\text { Buak }\end{array} & \begin{array} { c } \text { Price of a } \\\text { Calculator }\end{array} \\\hline 2006 & \$ 24 & \$ 8 \\\hline 2007 & \$ 30 & \$ 12 \\\hline 2008 & \$ 32 & \$ 15 \\\hline\end{array}$$
-Refer to Table 11-3. If 2008 is the base year, then the consumer price index was

• A)64.5 in 2006, 87.1 in 2007, and 100 in 2008.
• B)64.5 in 2006, 270 in 2007, and 310 in 2008.
• C)200 in 2006, 87.1 in 2007, and 100 in 2008.
• D)200 in 2006, 270 in 2007, and 310 in 2008.

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Definitions:

Budgeted Raw Material Purchases

The estimated amount a company plans to spend on raw materials for production over a specific period.

Estimated Direct Labor Cost

The projected cost of labor directly involved in the manufacturing of goods or provision of services, excluding indirect labor costs.

Expected Cash Collections

Projected amounts of money a business anticipates receiving from its customers or clients over a specific period.

Estimated Direct Labor Cost

The anticipated cost of labor directly associated with the production of goods or services, typically estimated before production begins.