Table 23-11 Table 23-12

question 427

Essay

Table 23-11
Table 23-12
A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year.
-Refer to Table 23-12. Calculate the GDP deflator for 2012 and 2013.

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Definitions:

Beginning Inventory

The total value of a company's inventory at the start of an accounting period.

Net Sales

The amount of sales generated by a company after deductions for returns, allowances for damaged or missing goods, and discounts.

Markup

The percentage of the cost price of items that is added on to cover overhead expenses and profit.

FIFO Method

"First In, First Out," an inventory management and valuation method where goods produced or acquired first are sold or used first.