Index NumbersMCQMTP Nov 18Question 3826 of 197
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While construction of Index numbers which of the following has to be considered as point of reference in company various data describing individual behaviour.

Options

ASelection of weights
BBase Period
CSelection of Formulae
DChoice of variables
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Correct Answer

Option bBase Period

All Options:

  • ASelection of weights
  • BBase Period
  • CSelection of Formulae
  • DChoice of variables

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Detailed Solution & Explanation

While constructing index numbers, the **Base Period** has to be considered as the point of reference (with index value set to 100) when comparing various data describing individual behavior over time. Hence, **Option B** 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.

Key Concepts to Understand

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