Which of the Following Is FALSE

question 39

Multiple Choice

Which of the following is FALSE?

• A)U)S. GDP underestimates actual economic activity because it does not include underground activity
• B) an increase in the ratio of currency holdings to bank deposits may be seen as evidence for an increase in underground activity
• C) if the underground economy grows rapidly, then the rate of economic growth will be underestimated
• D)as the underground economy grows, consumption spending decreases
• E)underground activity includes income from services produced at home but not reported, such as typing someone else's term paper

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Definitions:

Job-Order Costing

An accounting method that assigns manufacturing costs to an individual product or batch of products, making it possible to track the specific costs associated with producing each.

Automated Router

A device or software that uses pre-set guidelines to direct data traffic automatically in a network.

Predetermined Overhead Rate

A rate calculated at the beginning of a period, used to allocate overhead costs to products based on a particular activity base, such as machine-hours or labor-hours.

Machine-Hours

The total number of hours that machinery is in operation, often used as a measure for allocating manufacturing overhead costs.