Which of the Following Is Considered Investment According to the National

question 266

Multiple Choice

Which of the following is considered investment according to the national spending approach?

• A) depositing $1,000 into a savings account
• B) buying $1,000 worth of stocks and bonds
• C) spending $1,000 on college tuition
• D) spending $1,000 on a new piece of farming equipment

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Definitions:

Total Job Cost

The total expenses associated with a specific job or project, including materials, labor, and overhead costs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products based on a predetermined formula.

Variable Manufacturing Overhead

Costs that vary proportionally with manufacturing activity, such as indirect materials and utilities.

Markup

The amount added to the cost of goods to cover operating expenses and profit, expressed as a percentage of cost.