The Following Are Examples of Final Goods in National Income

question 3

Multiple Choice

The following are examples of final goods in national income accounting, except

• A)lumber and steel beams purchased by a construction company.
• B)a tractor purchased by a construction company.
• C)a laptop computer purchased by an executive for personal use.
• D)a desktop computer purchased by an executive for business use.

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Definitions:

Machine-hour

A measure of the amount of time a machine is run, often used as a basis for allocating manufacturing overhead to products.

High-low Method

A technique used in cost accounting to estimate fixed and variable costs associated with production by using the highest and lowest levels of activity.

Office Expense

Refers to the costs associated with running an office, including rent, supplies, and utilities.

Escrow Completed

The point at which all conditions of a real estate transaction are met and the title of the property is transferred from the seller to the buyer.