In 2009, Output Was Beneath Potential

question 32

Multiple Choice

In 2009, output was beneath potential. At the same time, the budget deficit hit a record high of over $1 trillion. If President Obama were to have pursued budget cuts, given the state of the economy, these spending cuts would have:

• A)been procyclical.
• B)been countercyclical.
• C)increased interest rates.
• D)crowded out investment.

Recognize the significance of the undifferentiated selling approach and its applications.

Differentiate between the undifferentiated selling approach and account segmentation in managing sales territories.

Understand the process and importance of setting sales territories for efficient market coverage.

Learn the principles and application of multivariable account segmentation in sales.

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Definitions:

Equivalent Units

A measure used in cost accounting to express the amount of materials, labor, or overhead a partially completed unit represents in terms of fully completed units.

Operations

Activities and tasks involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.

Process Costing

An accounting method used to evaluate the cost of a production process by assigning costs to sections of the manufacturing process.

Job Order System

A method of assigning costs to specific production batches or jobs and is used in manufacturing industries where customization or unique products are produced.