Actual Expenditure Might Differ from Planned Expenditure Because

question 184

Multiple Choice

Actual expenditure might differ from planned expenditure because

• A) actual net exports differ from planned net exports.
• B) actual government expenditure differ from planned government expenditure.
• C) actual consumption expenditure differs from planned consumption expenditure.
• D) actual investment differs from planned investment.

---

Definitions:

Work in Process Inventories

Partially completed goods that are still undergoing the production process.

Standard Fixed Manufacturing Overhead Rate

This refers to the predetermined rate at which fixed manufacturing overhead costs are allocated to units of production, based on an expected level of activity.

Work in Process

Goods in various stages of production, not yet completed but not as raw materials, within a manufacturing process.

Fixed Manufacturing Overhead Standards

Pre-determined benchmarks for the fixed costs involved in the production process, not varying with the level of output.