Which of the Following Would Be Included in the Consumption

question 73

Multiple Choice

Which of the following would be included in the consumption expenditure component of GDP?

• A)export sales of snowmobiles
• B)government expenditure for highway construction
• C)the increase in inventories at lumber mills
• D)expenditure by a firm for annual payroll services
• E)a municipal government's purchase of new desks for city council chambers

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Definitions:

Batch-Level Activity

Operations or tasks that are performed for each batch of goods produced, irrespective of the overall production volume.

Direct Labour-Hours

The total hours of labor directly involved in production, used to allocate costs or measure productivity.

Traditional Costing System

A cost allocation system that assigns costs to products based on an average overhead rate, without the detailed processes of activity-based costing.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, based on estimated activity levels.