If the Price Index Was 90 in Year 1,100 in Year

question 194

Multiple Choice

If the price index was 90 in year 1,100 in year 2,and 95 in year 3,then the economy experienced

• A)10 percent inflation between years 1 and 2 ,and 5 percent inflation between years 2 and 3.
• B)10 percent inflation between years 1 and 2,and 5 percent deflation between years 2 and 3.
• C)11.1 percent inflation between years 1 and 2,and 5 percent inflation between years 2 and 3.
• D)11.1 percent inflation between years 1 and 2,and 5 percent deflation between years 2 and 3.

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Definitions:

Cost Center

A department or unit within an organization that does not directly generate revenue but incurs costs, used for budgeting and cost control.

Control Costs

Efforts and measures implemented to monitor and manage expenses to ensure they align with budgetary constraints and financial goals.

Cost Center Evaluation

The process of analyzing the performance and efficiency of a department or unit within an organization that does not directly generate revenue.

Controllable Margin

The amount of profit or contribution margin that a manager can directly influence by controlling costs and generating revenues.