Which One of the Following Transactions in a Particular Year

question 228

Multiple Choice

Which one of the following transactions in a particular year is included in gross domestic product for that year?

• A) The government pays a computer services company that assisted in the delivery of Social Security payments to retirees.
• B) A car is produced in the previous year and remains in inventory for the entire year under consideration.
• C) A stay-at-home parent performs housework that the family would otherwise have paid a maid $20,000 a year to perform.
• D) Social Security payments to retirees

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Definitions:

Activity Variance

The difference between the planned activity and the actual activity in terms of costs or hours.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level, allowing better analysis and control of costs.

Actual Costs

The genuine expenses incurred in the production of goods or delivery of services, measured after they occur.

Cost Formulas

Mathematical equations used to calculate the costs associated with different accounting and financial practices.