Nondiscretionary Spending by the Government Would Include All of the Following

question 23

Multiple Choice

Nondiscretionary spending by the government would include all of the following except

• A)Social Security
• B)National defense
• C)Food stamps
• D)Interest on the national debt

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Definitions:

Prime Costs

The combination of direct materials and direct labor costs that are directly attributable to the production of goods.

Nonmanufacturing Cost

Expenses not directly involved in the production of goods, such as selling, administration, and other overhead costs.

Factory Overhead

All indirect costs associated with manufacturing, such as salaries of supervisors, maintenance, and utilities, not directly tied to the production of goods.

Direct Labor

The cost of wages for employees who directly manufacture products or provide services, considered a variable cost in production.