Saving in the Economy

question 59

Multiple Choice

Saving in the economy

• A) occurs when current spending is less than current incomes.
• B) is generally not a determinant of future output.
• C) and investment are essentially the same concept.
• D) occurs when current consumption is more than current output.

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Definitions:

Direct Labor Costs

Expenses associated with employees who are directly involved in the production of goods or services.

Actual Hours

Refers to the real amount of time spent on a task or activity, as recorded or reported.

Variable Overhead Efficiency Variance

The difference between actual variable overhead based on the standard hours allowed for the actual output and the actual variable overhead incurred.

Standard Machine-Hours

An accounting measure used to allocate manufacturing overhead costs to products based on the number of hours machines are expected to operate.