comparative calculation that defines the relationship between two or more values by calling one value the standard with a value of 100 and all other values some percent over or under the base standard of 100. For example, if the standard is 20, a value of 30 would be expressed as 150.
comparative calculation that defines the relationship between two or more values by calling one value the standard with a value of 100 and all other values some percent over or under the base standard of 100. For example, if the standard is 20, a value of 30 would be expressed as 150.
Indexes can also be used to compare cost trends over time. For example, if $100 is spent on advertising per 1000 units sold in the base year, and $80 is spent on advertising for every 1000 units sold two years later, the advertising cost index in the third year is 80.
