Which of the Following Is Considered Discretionary Government Spending

question 15

Multiple Choice

Which of the following is considered discretionary government spending?

• A) payments to Social Security recipients
• B) payments to unemployment insurance recipients
• C) payments to government employees
• D) payments to food stamp recipients
• E) payments to foreign bondholders

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Definitions:

Common Fixed Expenses

Expenses that do not change in total amount with changes in the volume of production or sales, such as rent, salaries, and insurance.

Net Operating Income

The total profit of a company after operating expenses are subtracted from total revenue, but before deducting interest and taxes.

Total Period Cost

The sum of all expenses associated with operating a business during a specific accounting period.

Absorption Costing

An accounting method that includes all manufacturing costs (direct and indirect) in the cost of a product.