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What is Cost indexation?

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-1 2022-10-26T19:32:04+00:00
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Hi,

Cost indexation is a method or system used by companies or governments to link pricing and asset values. This is accomplished by tying changes in the value of a good, the cost of a service, or the other specific value to a preset price or composite index. Indexation entails determining a price index and assessing if tying the worth to the price index would achieve the organisation's objectives. In a high-inflation context, indexation is most typically utilised with wages. Indexation is often referred to as ascending.

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