Which of the Following Actions Will Decrease the Gross Domestic

question 102

Multiple Choice

Which of the following actions will decrease the gross domestic product (GDP) ?

• A)Tom's alarm clock breaks,so he buys a new one.
• B)Tom buys a new alarm clock because he tends to sleep through the first alarm.
• C)Tom's alarm clock breaks.He now oversleeps and has to buy a cup of coffee on the way to work instead of making it at home.
• D)Tom gets fired for being late often after his alarm clock breaks.
• E)Tom sells his broken alarm clock and uses the money to buy some French fries.

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Definitions:

Standard Rate Per Hour

The standard rate per hour denotes the predetermined cost or wage rate for work performed, typically used in budgeting and payroll calculations.

Direct Labor Time Variance

The difference between the actual hours worked and the standard hours allowed, multiplied by the standard labor rate.

Actual Direct Labor Hours

The real hours worked by employees directly involved in the production process.

Direct Labor Time Variance

The calculation difference between the expected time to produce an item and the actual time taken, impacting cost control and labor efficiency.