The Price Index That Refers to All Final Goods and Services

question 64

Multiple Choice

The price index that refers to all final goods and services produced in a country is the

• A)GDP deflator.
• B)PPI.
• C)CPI.
• D)GDP inflator.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (standard) cost, indicating how effectively a company controls its materials costs.

Raw Material Purchase

The process of acquiring the basic materials needed for production of goods.

Fixed Manufacturing Overhead

Fixed manufacturing overhead costs are those production expenses that do not vary with the volume of production, such as salaries of managerial staff and rent of the factory.

Budgeted Fixed Manufacturing Overhead

The predetermined amount of fixed overhead expenses expected to be incurred in the manufacturing process.