ACCA MA · Chapter 2 · Question 3 of 12
A cost index (base Year 1 = 100) stood at 160 in Year 4 and 184 in Year 6. What was the percentage increase in costs between Year 4 and Year 6?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) 15.0%
Explanation
The percentage change is the change in the index divided by the starting index: (184 - 160) / 160 = 24 / 160 = 15.0%. The 24-point rise is not a percentage because the starting point is 160, not 100. Dividing by 184 gives 13.0%, which uses the wrong base.
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