Table 20-7 $\begin{array}{|c|c|}\hline \text { Year } & \text { CPI }(1982-1984=100) \\\hline 2015 & 175 \\\hline 2016 & 180 \\\hline\end{array}$

question 281

Multiple Choice

Table 20-7
$\begin{array}{|c|c|}\hline \text { Year } & \text { CPI }(1982-1984=100) \\\hline 2015 & 175 \\\hline 2016 & 180 \\\hline\end{array}$

-Refer to Table 20-7.Suppose that the data in the table above reflect price levels in the economy.What is the inflation rate between 2015 and 2016?

• A)2.9%
• B)3.5%
• C)4.6%
• D)5%
• E)7.5%

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Definitions:

Direct Labor

Labor costs directly associated with the manufacturing of products or provision of services, typically measured in hours worked or wages paid.

Goods in Process

Inventory items that are in the production process but are not yet complete, also known as work-in-process (WIP).

Applied Manufacturing Overhead

The amount of manufacturing overhead costs allocated to each unit of production, based on a predetermined overhead rate.

Raw Materials

Raw materials are the unprocessed or minimally processed resources used to produce goods, forming the basic input in manufacturing processes.