The Table Below Shows Hypothetical Data for Volumes of E-Books

question 76

Multiple Choice

The table below shows hypothetical data for volumes of e-books and hardcover books sold over a 3-year period in a particular city.
TABLE 2-3
-Refer to Table 2-3.Suppose we choose Year 1 as the base year and construct a series of index numbers with which to analyze sales data.The index numbers for volumes of hardcover books sold (starting with Year 1) is

• A)431; 819; 100.
• B)43.1; 81.9; 100.
• C)100; 81.9; 43.1.
• D)100; 0.819; 0.431.
• E)0.431; 0.819; 100.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the production of a specific good or service and are a significant portion of the production cost.

Standard Quantity

The expected amount of materials or inputs required to produce a unit of product under normal operating conditions.

Direct Materials Quantity Variance

The variance between the real amount of direct materials consumed during manufacturing and the anticipated standard amount.

Standard Materials Quantity

The expected amount of materials that should be used for the production of a certain number of units, as set by a company's standards.