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1.0 Chapter Introduction

Chapter Introduction In this Chapter , you will learn to use price index numbers to make the price adjustments necessary to analyze price and cost information collected over time. Price index Numbers. Price index numbers measure relative price changes from one time period to another. They are so widely used that discussions related to index numbers in contract pricing normally refers to price indexes. However, other index numbers could be used in contract pricing, particularly indexes that measure productivity. Simple and Aggregate Price index Numbers.

• Producer Price Index Detailed Report. Probably the best known and most frequently used source of price index numbers for material pricing is the Producer Price Index

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