In 2000, an Executive Earned $100,000

question 102

Short Answer

In 2000, an executive earned $100,000. In 2010, the executive earned $125,000. The CPI in 2000 was 172.2; the CPI in 2009 was 214.537. Using the CPI base, 1982-1984 = 100, what was the increase in real income from 2000 to 2009?

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Definitions:

Direct Labor-Hours

The collective work hours of personnel directly part of the production workflow.

Direct Materials Cost

The cost of raw materials directly involved in the production of goods, easily traceable to specific products.

Activity-Based Costing

An approach in cost calculation that pinpoints various activities in a company and apportions the expenses of these activities to products and services, reflective of their actual utilization levels.

Direct Labor-Hours

The total hours of labor directly involved in the manufacturing process, crucial for calculating labor costs and production efficiency.