Which of the Following Is an Example of an Explicit

question 26

Multiple Choice

Which of the following is an example of an explicit income transfer?

• A)The check received by a person currently employed by the postal service.
• B)A Social Security pension paid to a retired factory worker.
• C)A payment to a member of the U.S.Army who has recently been transferred to Germany.
• D)The paycheck received by a person who missed work last week because of vacation.

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Definitions:

Direct Labor

The labor costs associated directly with the production of goods or services, such as wages for assembly line workers.

Master Budget

An integrated set of financial plans that outlines an organization's financial and operational goals for a specific period, combining various individual budgets into one comprehensive budget.

Credit Sales

Sales made by a business where payment is not received at the time of sale but is instead deferred to a later date.

Raw Materials Purchases

The total cost incurred to buy raw materials that are to be used in the production process.