Chapter 32, Index numbers Flashcards Preview

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Flashcards in Chapter 32, Index numbers Deck (2)
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1
Q

Index numbers

A

converts values or numbers from different years into a value based on one particular year. BY converting the numbers from different years into one year as a common denominator, this allows the business to see whether there have been genuine improvements or not

2
Q

Formula

A

Number in year required / Number in base year x 100