Index NumbersMCQPYQ Jan. 21Question 3795 of 197
All Questions

The cost of living index is always

Options

APrice index number
BQuantity index number
CWeighted index number
DValue index number
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Correct Answer

Option cWeighted index number

All Options:

  • APrice index number
  • BQuantity index number
  • CWeighted index number
  • DValue index number

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Detailed Solution & Explanation

The **cost of living index number** (also known as the Consumer Price Index) is always a **weighted index number**. This is because different commodities have different levels of importance to a typical household, and therefore, weights reflecting their share in total expenditure must be applied. Hence, **Option C** is the correct answer.

About This Chapter: Index Numbers

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Construction of Index Numbers, Time Series

This chapter covers Construction of Index Numbers, Time Series and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

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