Table 11-4
the Table Below Pertains to Wrexington, an Economy

question 53

Multiple Choice

Table 11-4
The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. $$\begin{array} { | c | c | c } \text { Year } & \begin{array} { c } \text { Price of } \\\text { Meat }\end{array} & \begin{array} { c } \text { Price of a } \\\text { Tryy }\end{array} \\\hline 2004 & \$ 3 \text { per pound } & \$ 2 \\\hline 2005 & \$ 1 \text { per pound } & \$ 7 \\\hline 2006 & \$ 4 \text { per pound } & \$ 5 \\\hline\end{array}$$
-Refer to Table 11-4. If the base year is 2004, then the CPI

• A)increased from 2004 to 2005 and increased from 2005 to 2006.
• B)increased from 2004 to 2005 and decreased from 2005 to 2006.
• C)decreased from 2004 to 2005 and increased from 2005 to 2006.
• D)decreased from 2004 to 2005 and decreased from 2005 to 2006.

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Definitions:

Shared

Characteristic of something that is used or owned collectively by a group or community.

Product

A good or service that is created, offered, and sold to customers.

Activity-Based Costing

A pricing strategy where the organization's activities are pinpointed, and the costs for these activities are distributed across all products and services based on their respective consumption levels.

Unit Product Cost

The sum of all expenses, such as materials, labor, and overhead, divided by the total units manufactured.