Which of the Following Statements Is True

question 96

Multiple Choice

Which of the following statements is true?

• A) Base year prices are necessarily higher than current year prices.
• B) The CPI in the base year is always 100.
• C) If the CPI is 112 in year 1 and 123 in year 2,prices have risen by approximately 9.8 percent between the two years.
• D) b and c
• E) a,b,and c

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Definitions:

Equivalent Unit

A concept used in process costing that converts partially completed units into a number of equivalent fully completed units, facilitating the calculation of unit costs.

Processing Department

A division in a manufacturing operation where a specific type of process or sequence of operations is carried out on materials to convert them into finished goods.

Materials

The physical components or substances used in the production of goods.

Cost System

An accounting framework used to record, track, and analyze the costs associated with a company's operations, helping in budgeting and financial decision-making.