Which of the Following Is a Transfer Payment and Is

question 160

Multiple Choice

Which of the following is a transfer payment and is not counted as part of government purchases?

• A) defense spending
• B) government spending on federal prisons
• C) government welfare payments
• D) government worker salaries

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Definitions:

Direct Labor-Hours

The total hours of labor directly involved in manufacturing a product or providing a service.

Adjusted Cost of Goods Sold

The cost of goods sold metric that has been modified for adjustments such as stock variations, returns, or discrepancies.

Standard Cost Variances

The differences between the actual costs incurred and the standard costs previously set for materials, labor, and overhead in manufacturing.

Labor Efficiency Variance

The difference between the actual number of labor hours worked and the standard hours expected, multiplied by the standard labor rate.