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:

Overstated Beginning Inventory

An accounting error where the starting inventory level is recorded higher than it actually is, leading to inaccuracies in financial statements.

Lower of Cost or Market

An accounting principle that values inventory at the lower amount between its original cost and its current market price.

Inventory Valuation

The method used to assess the cost of unsold goods or materials held by a company, impacting financial reporting and taxation.

Specific Identification Method

a method in inventory management and accounting that tracks the cost of specific items of inventory, often used for unique or high-value items.