Index NumbersMCQMTP Nov 18Question 3827 of 197
All Questions

Which of the options does not contain the proper use of Index numbers.

Options

AHelpful in policy determination
BUseful in Forecasting
CEqually useful in all condition for different purpose
DHelpful in comparison
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Correct Answer

Option cEqually useful in all condition for different purpose

All Options:

  • AHelpful in policy determination
  • BUseful in Forecasting
  • CEqually useful in all condition for different purpose
  • DHelpful in comparison

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Detailed Solution & Explanation

Index numbers are specialized averages designed for specific purposes. An index number designed for one purpose **cannot be equally useful in all conditions for different purposes**. This is a limitation, not a proper use. 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.

Key Concepts to Understand

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