In the exam I attempted, they gave I believe 4 rates of inflation for variable cost for 4 years (lets say 7,8,9,10 percentage).I calculated the variable cost for the second year as variable cost *1.07*1.08….for the third year variable cost*1.07*1.08*1.09 and so on .Is this correct?
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Inflation rate application
3y ago#1It sounds correct, but I cannot say for certain without seeing the question.
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