The Number of Items Produced and the Price Per Item

question 53

Multiple Choice

The number of items produced and the price per item for the Duffy Manufacturing Company are as follows. What is the value index of production for 2006 using 1990 as the base period?

• A)115.2
• B)72.9
• C)110.6
• D)127.1

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Definitions:

General and Administrative Costs

Expenses related to the day-to-day operations of a business that are not directly linked to production or sales.

Gross Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold; it measures how efficiently a company uses its labor and supplies in production.

Cost of Goods Sold

Refers to the immediate expenses related to manufacturing products that a business sells.

General and Administrative Costs

Expenses related to the overall administration and management of a business, excluding production and sales costs.