The Simple Multiplier Is Defined As

question 56

Multiple Choice

The simple multiplier is defined as:

• A)1 - MPS.
• B)change in GDP *initial change in spending.
• C)change in GDP/initial change in spending.
• D)change in GDP - initial change in spending.

---

Definitions:

Activity Rate

The measure used to allocate costs to activities based on their use of resources.

Activity Cost Pool

A grouping of all the costs related to a particular activity, used in activity-based costing to more accurately allocate costs to products or services.

Activity-Based Costing

A costing method that allocates overhead costs to specific activities, providing more accurate costs of producing specific products or services.

Overhead Applied

The process of assigning a portion of fixed and variable overhead costs to individual units of production based on a predetermined rate.