Chain base index numbers are advantageous when: MCQ with Answer and Explanation

Chain base index numbers are advantageous when:
A. Short-term period-to-period changes are of primary interest
B. Long-term trends with a stable base are needed
C. Data for the base period is unavailable
D. Calculating weighted averages of quantities
Answer: Option A
Solution (By JKExamLibrary)
Chain base indices use the previous period as base, making them sensitive to recent changes and suitable for analyzing short-term fluctuations, though they complicate long-term comparisons.

This question belongs to: Accountancy and Statistics Statistics

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