In 1976, the Cost of a Movie Was $4

question 9

Multiple Choice

In 1976, the cost of a movie was $4. In 2012, it's $9. If the CPI for 1976 is 56, and 228 for 2012, then we could say the cost of a 1976 movie in 2012 would be:

• A) $16.29, so the cost of movies has not increased as much as general inflation.
• B) $16.29, so the cost of movies is relatively more in 2012 than it was in 1976.
• C) $2.21, so the cost of movies has not increased as much as general inflation.
• D) $2.21, so the cost of movies is relatively more in 2012 than it was in 1976.

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Definitions:

Job-Order Costing

A costing system used in situations where many different products, jobs, or services are produced each period.

Sequential Manufacturing System

A sequential manufacturing system is a production process where operations are carried out in a specific, consecutive order to complete the manufacturing of a product.

Production Report

A document detailing the output of a manufacturing process, including quantities produced, defect rates, and efficiency.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into the number of fully completed units that could have been produced with the same amount of input.