Data for Selected Vegetables Purchased at Wholesale Prices for 1995

question 113

Multiple Choice

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown next. What is the Laspeyres price index?

• A) 98.4
• B) 107.0
• C) 108.0
• D) 117.5

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Definitions:

Periodic Inventory Systems

Periodic Inventory Systems are accounting methods that calculate the inventory at the end of an accounting period to determine cost of goods sold and ending inventory.

Perpetual Inventory Systems

Inventory accounting method that continuously tracks inventory levels and updates accounting records for each purchase and sale.

Inventory Records

Inventory records are detailed lists or databases that track the quantities, locations, and statuses of products or materials that a company holds in stock.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of the materials and labor directly used to create the product.