The formula to calculate the Percentage Cost Increase (PCI) is:
\[ PCI = \left( \frac{CC - OC}{OC} \right) \times 100 \]
Where:
Percentage Cost Increase (PCI) is a measure used to describe the percentage change in cost from the original cost to the current cost. It is calculated by dividing the change in cost by the original cost and then multiplying by 100. This measure is useful in various fields such as finance, economics, and business to understand how costs have changed over time.
Let's assume the following values:
Step 1: Calculate the Percentage Cost Increase (PCI):
\[ PCI = \left( \frac{120 - 100}{100} \right) \times 100 = \left( \frac{20}{100} \right) \times 100 = 20\% \]
Therefore, the percentage cost increase is 20%.
