An Example of a Final Good in National Income Accounts

question 9

Multiple Choice

An example of a final good in national income accounts would be new:

• A)lawn mowers purchased by Cut-rite Mowers.
• B)flowers purchased by homeowner Lenny Davis.
• C)chemicals purchased by Green Grass Lawn Care.
• D)trees purchased by Wendy Lee's Garden Center.

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Definitions:

Actual Overheads

The real costs incurred in the day-to-day operation of a business, including utilities, rent, and maintenance.

Capacity Utilization

A measure of how effectively an entity is using its production or operational capacity.

Budgeted Factory Overhead

The expected or estimated overhead costs for a factory within a certain period, typically used for planning and control purposes.

Budgeted Fixed Overhead

The predetermined estimate of the total fixed costs required to produce a specific amount of output over a fixed period.