According to the Flow of Funds Accounts of the United

question 40

Multiple Choice

According to the Flow of Funds Accounts of the United States, the largest single asset of U.S. households is ________.

• A) mutual fund shares
• B) real estate
• C) pension reserves
• D) corporate equity

---

Definitions:

Variable Costing

An accounting method that considers only variable costs for product costing, excluding fixed manufacturing overhead.

Unit Product Cost

The total cost to produce one unit of a product, including direct materials, direct labor, and allocated overheads.

Net Operating Income

An indicator of a company's profitability calculated by subtracting operating expenses from operating revenues, excluding taxes and interest.

Common Fixed Expenses

Overhead costs that do not fluctuate with the level of production or sales, such as rent, salaries of administrative staff, and insurance.