Consumption Spending Is

question 148

Multiple Choice

Consumption spending is

• A) spending by households, businesses, and governments on all goods consumed within one year.
• B) spending by individuals and households on only nondurable goods, since they are consumed quickly.
• C) spending on goods and services by heads of households.
• D) spending by individuals and households on both durable and nondurable goods.

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Definitions:

Direct Labor

Direct Labor refers to the wages and benefits of employees who are directly involved in the production of goods, considered a variable cost.

Manufacturing Costs

The aggregate costs associated with the process of producing finished goods, including materials, labor, and overhead.

Direct Materials

Raw materials that are directly traceable to the production of finished goods.

Cost Of Goods Manufactured

The total production cost of goods that were completed during a specific accounting period, including direct materials, direct labor, and manufacturing overhead.