The National Debt

question 4

Multiple Choice

The national debt

• A) is the difference between total government revenues and government expenditures.
• B) is the sum of all past federal deficits plus any surpluses.
• C) is the sum of all past federal deficits less any surpluses.
• D) grows when government spending increases.

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Definitions:

Weighted-Average Method

A costing method that calculates the cost per unit by dividing the total cost by the total number of units produced, treating all units as equal regardless of when they were actually manufactured.

Assembly Department

A division in a manufacturing plant where components are joined together to form a finished product.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, adjusting for the portion of those goods that is complete.

Process Costing

An accounting method used to allocate costs to units of output in industries where production is continuous and units are indistinguishable from each other.