A Consumer Price Index of 160 in 1996 with a Base

question 109

Multiple Choice

A consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that the cost of the market basket

• A)equaled $160 in 1996.
• B)equaled $160 in 1983.
• C)rose 160% from the cost of the market basket in the base year.
• D)rose 60% from the cost of the market basket in the base year.

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Definitions:

Income Statement

A financial statement that shows profits or losses at one point in time.

Profitability

The ability of a business to earn a profit, calculated as the difference between its revenue and expenses.

Finance Manager

A professional responsible for managing an organization's financial health by planning, directing, and coordinating investments.

Balanced Scorecard

A planning and management framework that ensures business operations are in line with the organization's vision and strategy, enhances communication internally and externally, and tracks the organization's progress towards strategic objectives.