If a Market Basket Was Defined in 2014 and It

question 89

Multiple Choice

If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $12,000 to purchase those identical goods in 2015, then the price index for the base year is

• A)100.
• B)(10000/12000)*100=83.33.
• C)(12000/10000)*100=120.
• D)unknown given this data.

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Definitions:

Contract Revenue

Revenue recognized by a company from contracts for the sale of goods or services, often recognized over the period of the contract based on the completion or delivery of services/goods.

IFRS

International Financial Reporting Standards are a set of accounting standards developed by the International Accounting Standards Board that are becoming the global standard for the preparation of public company financial statements.

Recoverable Costs

Expenditures that a company expects to recover in the future through tax deductions, reimbursements, or as contracts costs.

Critical Event

A significant occurrence or change that impacts an organization's operations or decision-making process.