When Aggregate Planned Expenditure Is Less Than Real GDP, Unplanned

question 209

Multiple Choice

When aggregate planned expenditure is less than real GDP, unplanned

• A) consumption expenditure occurs.
• B) exports are made.
• C) investment occurs.
• D) government expenditures are made.

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Definitions:

Underapplied Overhead

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Cost of Goods Sold

Cost of Goods Sold (COGS) is an accounting term indicating the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Overapplied Overhead

Overapplied overhead occurs when the allocated manufacturing overhead cost is more than the actual overhead costs for a production period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.