The Consumer Price Index in June 2006 Was 159

question 56

Multiple Choice

The Consumer Price Index in June 2006 was 159.3 (1982-84 = 100) . What does this indicate about prices from 1982-84 to June 2006?

• A)It rose 59.3%.
• B)It rose 100.0%.
• C)It rose 159.3%.
• D)It declined 159.3%.

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are required to convert raw materials into finished goods.

Job-Order Costing

An accounting method that assigns costs to specific jobs or batches, often used for custom orders.

Process Costing

An accounting methodology used in manufacturing environments where the cost of the product is calculated based on the processes it goes through, ideal for homogenous products.

Weighted-Average Method

A cost accounting method that calculates the cost per unit by dividing the total costs by the total number of units produced, incorporating costs from previous periods.