CONFERENCE BOARD INDEX 31 
mates necessarily were used at first, later procedure pro- 
duced more exactly measured results. Where necessary, 
corrections of earlier estimates were made and noted, but 
for the most part, the number in later years is merely a 
refinement or standardization of earlier procedure. 
Basic BubceTr 
In order to determine how much the cost of living has 
increased within a given period, something must be known 
regarding the cost of living at the starting point. This may 
mean the establishment of a complete budget with all goods 
and services itemized so that a comparison of the aggregate 
cost on one date with the aggregate cost on another date on a 
percentage basis shows the change in the price level;' or, 
as is more usually the case, goods and services representative 
of the complete budget may be selected and priced. A com- 
parison of changes in the cost of these, weighted so as to 
represent their importance in the total consumption of which 
they are a sample, shows the change in the price level. The 
latter method is used by the National Industrial Conference 
Board; prices of 88 items and rents are collected. 
Since changes in the cost of living were to be computed 
with prices in July, 1914, as a base, it was thought that the 
standard of living prevailing at that time should likewise 
serve as the standard by which to measure the subsequent 
price level. There were, however, no comprehensive data 
at hand to show the average or prevailing cost of living 
among wage earners in the United States in 1914, or how 
wage earning families were distributing their expenditures 
among the various goods and services making up the total 
cost of living. As a substitute for these exact figures, an 
estimate was made, on the basis of existing data, of the 
proportions which would represent a fair allocation of out- 
lay by families of small and moderate means. 
The most important budget used was that of the United 
! This method is used by the Visiting Housekeeper Association of Detroit and 
“ertain other organizations which compute index numbers on a small scale. 
It will be remembered that information regarding either the quantities consumed 
or the money outlay for each separate item is necessary to weight prices of the 
fumerous goods and services making up the total cost of living.