Define the Following Terms and Explain Their Importance in the Study

question 66

Essay

Define the following terms and explain their importance in the study of macroeconomics:
a. Consumer expenditures
b. Investment spending
c. National income
d. Transfer payments

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Definitions:

Weighted Average Costing

A method of calculating the cost of inventory based on the average cost of all similar items in stock, weighted by the quantities of each item.

Unit Costs

The expense associated with creating, keeping, or buying a single unit of a good or service.

Direct Materials

Raw materials and components that are directly used in the manufacturing of a product and can be easily traced back to it.

Equivalent Unit

A concept in cost accounting used to allocate production costs between completed units and units still in process, by converting work-in-process units into a number of equivalent completed units.