In a Trend Analysis,an Index Number of 139 for 20x5

question 110

Multiple Choice

In a trend analysis,an index number of 139 for 20x5 sales indicates that

• A)sales for 20x5 were 139 percent higher than sales for the same company in the base year.
• B)sales for 20x5 for this company were 139 percent of the sales figure of another company being used in the comparison.
• C)sales for 20x5 were 139 percent of the sales for the same company in the base year.
• D)actual sales for 20x5 exceeded budgeted sales for 20x5 by 39 percent.

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Definitions:

Special Cost Pool

A financial management term for aggregating specific costs together, typically for reporting or reimbursement purposes.

ABC System

An approach in accounting that allocates overhead and indirect costs to specific activities related to the production of a product or service.

Allocating Costs

The process of assigning indirect expenses to different departments, products, or projects based on relevant criteria.

Measure Of Activity

A parameter or unit used to quantify the level of operational or production activity within a specific period.