In Each of the Four Expenditure Categories,national Income Accounts Measure

question 70

Multiple Choice

In each of the four expenditure categories,national income accounts measure ________ expenditures,while the theoretical model of the economy deals with ________ expenditures.

• A)actual; autonomous
• B)desired; actual
• C)induced; exogenous
• D)endogenous; exogenous
• E)actual; desired

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Definitions:

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours allowed, multiplied by the standard labor rate, indicating efficiency in labor usage.

Direct Labor Standards

The predetermined amount of labor time and cost that it should ideally take to produce one unit of a product, used for budgeting and performance evaluation.

Actual Direct Labor Cost

The total expense incurred from the wages and associated benefits of workers directly involved in the manufacturing of a product.

Total Standard Cost

The total budgeted cost for manufacturing a product, based on standard prices and quantities for input.