The Price Index That Measures the Prices of Goods and Services

question 71

Multiple Choice

The price index that measures the prices of goods and services purchased by firms is called the:

• A) producer price index.
• B) purchasing power index.
• C) consumer price index.
• D) retail sales index.

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Definitions:

Profit Center

A branch or division of a company that is directly responsible for generating its own revenue and profits.

Division Profit

This refers to the net income generated by a specific division or segment of a larger company.

Company-wide Profit

represents the total earnings of a company after all expenses and taxes have been deducted from revenue, reflecting the overall financial performance across all departments and activities.

Transfer Price

The cost at which products, services, or intellectual property are exchanged between departments inside the same corporation.