In Computing GDP, It Is Essential to

question 11

Multiple Choice

In computing GDP, it is essential to

• A) avoid double counting.
• B) include government transfer payments.
• C) include government tax revenues.
• D) count all intermediate products directly as they are produced.

---

Definitions:

Activity Cost Pools

A grouping of all the costs related to a particular activity used in activity-based costing for more accurate allocation of overhead costs.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, providing more accurate product costing.

Direct Labor

involves labor costs directly associated with the manufacturing of products, easily traceable to the end product.

Overhead Costs

Expenses related to the operation of a business that are not directly tied to a specific product or service, such as rent, utilities, and administrative expenses.