A Transfer Payment Is

question 7

Multiple Choice

A transfer payment is

• A)a payment for moving expenses a worker receives when he or she is transferred by an employer to a new location.
• B)a payment that is automatically transferred from your bank account to pay a bill or some other obligation.
• C)a form of government spending that is not made in exchange for a currently produced good or service.
• D)the benefit that a person receives from an expenditure by government minus the taxes that were collected by government to fund that expenditure.

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Definitions:

Cost Driver

A factor that causes a change in the cost of an activity; it directly impacts the cost of manufacturing goods or delivering services.

Reciprocal Services Method

An approach to allocating costs between departments that provide mutual services to each other, ensuring a fair distribution based on services rendered.

Algebraic Expression

A mathematical phrase that can contain ordinary numbers, variables, and operators, but no equal sign.

Janitorial Department

The division within an organization responsible for maintaining the cleanliness and hygiene of the premises.