Page 282 - F2 - MA Integrated Workbook STUDENT 2018-19
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Chapter 12
Index numbers
6.1 Index numbers
An index number is a technique for comparing, over time, changes in some feature of
a group of items (e.g. price or quantity) by expressing the property each period as a
percentage of some earlier period.
6.2 Calculating an index number
An index number is calculated as:
Current period value ÷ base period value × base period index (usually 100)
Test your understanding 8
Calculate the following index numbers
Month Cost $000 Calculation Index
May 138 100.0
June 149
July 158
August 130
September 136
274
