The annual report includes a statement of methods adopted and a summary of all reports made during the year.

• A. A financial statement
• B. A summary of opinions
• C. A statement of methods adopted and a summary of all reports
• D. A forecast for next year’s tariffs

Answer: (C)

This item tests what an annual tariff commission report should communicate about how it works and what it produced. A statement of methods adopted explains the standards, procedures, data sources, and analytical approach the commission uses in its inquiries. A summary of all reports made during the year shows the actual outputs—what topics were reviewed, what conclusions or recommendations were issued, and the overall scope of work. Together, these pieces give a clear view of both the process and the results, which is exactly what an annual report aims to present.

Other options don’t fit because a financial statement would focus on the commission’s finances rather than its methods and outputs; a summary of opinions highlights stakeholder views rather than the commission’s procedures and yearly outputs; and a forecast for next year’s tariffs is forward-looking planning material, not a summary of the year’s activities.