Table 23-2
the Following Table Contains Data for Country Mindalion

question 181

Multiple Choice

Table 23-2
The following table contains data for country Mindalion for the year 2019.
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$$\begin{array} { | l | l | } \hline \text { Household purchases of durable goods } & \$ 1,695 \\\hline \text { Household purchases of nondurable goods } & \$ 1,717 \\\hline \text { Household purchases of services } & \$ 400 \\\hline \text { Household purchases of new housing } & \$ 704 \\\hline \text { Purchases of capital equipment } & \$ 310 \\\hline \text { Inventory changes } & \$ 399 \\\hline \text { Purchases of new structures } & \$ 611 \\\hline \text { Depreciati on } & \$ 117 \\\hline \text { Salaries of government workers } & \$ 1,422 \\\hline \text { Government expenditures on public works } & \$ 589 \\\hline \text { Transfer payments } & \$ 777 \\\hline \text { Foreign purchases of domestically produced goods } & \$ 88 \\\hline \text { Domestic purchases of foreign goods } & \$ 140 \\\hline\end{array}$$
-Refer to Table 23-2. What was country Mindalion's GDP in 2019?

• A)$2,011
• B)$2,024
• C)$3,812
• D)$7,795

Appreciate the nuances of inventory systems and their effect on the financial position statement.

Classify companies as merchandising entities versus other business types based on their primary source of revenue.

Understand the terminology and principles of accounting inventory systems.

Calculate discounts and determine the cost of inventory considering the payment terms.

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Definitions:

Machine-Hours

An allocation base in cost accounting used to assign costs to products or services, based on the hours of machine operation required.

Fixed Manufacturing Overhead

Consists of manufacturing costs that do not change with the level of production, such as salaries of supervisors and rent for factory premises.

Denominator Level

The level of activity used to compute the fixed manufacturing overhead rate in absorption costing, affecting inventory and cost of goods sold.

Budget Variance

The difference between budgeted amounts and actual amounts spent or received.