Between 1994 and 2004,Jack's Salary Increased from $100,000 to $200,000

question 157

Multiple Choice

Between 1994 and 2004,Jack's salary increased from $100,000 to $200,000 per year and the price index increased from 100 to 300 during the same period.Which of the following statements best describes Jack's situation?

• A)his real income and money income have both increased
• B)his real income increased and money income decreased
• C)his real income and money income both decreased
• D)his real income decreased and money income increased
• E)his real income and money income remained unchanged

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Definitions:

Allocation Bases

Criteria or units used to distribute overhead costs to various cost objects, such as machine hours or labor hours.

Return on Investment

A financial metric used to evaluate the efficiency of an investment, calculated by dividing net profit by the cost of the investment.

Ending Assets

The total assets a company reports on its balance sheet at the end of a financial period, reflecting the company's resources and investments.

Return on Investment (ROI)

A performance measure used to evaluate the efficiency of an investment or compare the efficiency of several different investments, calculated as net profit divided by the cost of the investment.